NEW BRITAIN, Conn. - Stanley Black & Decker (NYSE: SWK) - Stanley Black & Decker (NYSE: SWK), an S&P 500 global diversified industrial company, announced today that it has entered into a definitive agreement to sell its Hardware & Home Improvement Group (“HHI”) to Spectrum Brands Holdings, Inc. (NYSE: SPB) (“Spectrum Brands”) for $1.4 billion in cash. The transaction, which is subject to customary closing conditions including required regulatory approvals, is expected to close by the first quarter 2013.

With 2011 revenues of $940 million, HHI is a provider of residential locksets, residential builder’s hardware and plumbing fixtures marketed under the Kwikset, Weiser, Baldwin, Stanley, National and Pfister brands, among others. Other than Pfister, HHI is reported within Stanley Black & Decker’s Security segment. With 90% of HHI’s revenues from North America and more than 50% of its revenue coming through U.S. home centers, the divestiture of HHI is a meaningful step in the continued diversification of Stanley Black & Decker’s revenue streams and geographic footprint.

The tax-efficient transaction is expected to generate after-tax cash proceeds of $1.3 billion. Over fifty percent of the proceeds from this divestiture will be used to repurchase shares and a smaller portion will go towards modest debt reduction, to ensure the company’s leverage ratios remain in its target range. The company will reinvest the remaining proceeds, together with existing offshore capital, to fund the previously announced Infastech acquisition, which will significantly add to the company’s Engineered Fastening growth platform and position in Asian markets. As a result of the impact of the share repurchase program and Infastech acquisition, the company does not expect significant annualized earnings per share dilution from the divestiture. There is no anticipated impact on Stanley Black & Decker’s previously provided 2012 guidance.

President and Chief Executive Officer, John F. Lundgren, commented, “The sale of HHI is consistent with our strategy of strengthening our position as a diversified industrial company while maintaining the significant upside potential of a housing market recovery through our $5 billion CDIY portfolio. While HHI is a healthy and profitable business, its characteristics are inconsistent with Stanley Black & Decker’s strategic objectives of diversifying our revenue base through further expansion into targeted end markets with higher growth and margin profiles, including emerging markets. Going forward, we remain focused on executing the promising organic growth initiatives we discussed on our July earnings call that should boost the company’s organic growth rate by two to three points annually in the coming years.”

Dave Lumley, Chief Executive Officer of Spectrum Brands Holdings said, “We are very pleased to be acquiring HHI, which is a successful, well-managed business with attractive market positions, international growth potential and established brands. We believe HHI has a bright future as part of Spectrum Brands, and look forward to supporting its product development and growth initiatives to fully realize HHI’s great potential.”

Stanley Black & Decker, an S&P 500 company, is a diversified global provider of hand tools, power tools and related accessories, mechanical access solutions and electronic security solutions, engineered fastening systems, healthcare solutions, infrastructure solutions and more. Learn more at www.stanleyblackanddecker.com.