Stanley Black & Decker Sells Aerospace Unit for $1.8 Billion, Targets 2.5x Leverage
Stanley Black & Decker sold its Consolidated Aerospace Manufacturing unit to Howmet Aerospace for $1.8 billion, generating $1.57 billion in net proceeds. It will use the proceeds to reduce debt and reach a leverage ratio near 2.5 times net debt to adjusted EBITDA by year-end.
1. Transaction Completion
Stanley Black & Decker has completed the divestiture of its Consolidated Aerospace Manufacturing business to Howmet Aerospace for $1.8 billion in cash. The deal finalizes a long-planned portfolio adjustment to streamline operations and focus on the company’s core Tools and Outdoor segments.
2. Debt Reduction and Financial Strategy
Following taxes and fees, the transaction yields approximately $1.57 billion in net proceeds. Management intends to apply these funds primarily to debt reduction, aiming to lower net debt to adjusted EBITDA to around 2.5 times by the end of the fiscal year.
3. Portfolio Focus and Value Creation
Leadership emphasizes this sale as a step toward concentrated investment in high-return businesses and disciplined capital allocation. The company remains poised to explore share repurchases or other growth initiatives once targeted leverage levels are achieved.