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UBS Maintains a 'Buy' on Stanley Black & Decker (SWK); Announces Fastening Acquistion

July 24, 2012 2:19 PM EDT Send to a Friend
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Price: $93.25 -0.22%

Rating Summary:
    7 Buy, 10 Hold, 0 Sell

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    Up: 13 | Down: 24 | New: 21
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UBS maintains a 'Buy' on Stanley Black & Decker (NYSE: SWK) price target of $74.00.

SWK has entered into a definitive agreement to acquire Infastech, a global manufacturer and distributor of specialty engineered fastening technologies headquartered in Hong Kong, from CVC Capital Partners and Standard Chartered Private Equity Limited for USD$850 million in cash.

Stanley Black & Decker expects the transaction to result in annual cost savings of approximately USD$25 million by year three. The acquisition is also expected to be immediately accretive to Stanley Black & Decker’s earnings per share (EPS), with accretion of USD$0.15 per share in the first year following the closing of the transaction and USD$0.35 per share in the third year following closing, excluding acquisition-related charges of $25 - $30 million which will largely be incurred in the first two years.

For an analyst ratings summary and ratings history on Stanley Black & Decker click here. For more ratings news on Stanley Black & Decker click here.

Shares of Stanley Black & Decker closed at $64.99 yesterday.

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