CVC, Standard Chartered in $850m Infastech exit

CVC and SCPE acquired Infastech for $350-400 million in 2010. The company produces mechanical fastening technologies for industrial, electronics and automotive customers. It has more than 2,000 employees and generated revenues of around $500 million in 2011, more than half of which came from the Asia-Pacific region.

Once combined with Emhart, Stanley Black & Decker's engineered fastening division, the business is expected to derive almost 40% of its revenues from the region.

The acquisition will take the emerging markets share of Stanley Black & Decker's total revenue to 16%, bringing the company closer to its mid-decade target of 20% or more. Stanley Black & Decker estimates that the acquisition will deliver annual cost savings of around $25 million by the third year and boost per-share earnings by $0.15 in the first year and $0.35 by the third year, excluding acquisition costs of $25-30 million.

"Infastech is both a highly accretive acquisition and a perfect strategic fit for Stanley Black & Decker," John F. Lundgren, the company's CEO, said in a statement. "It adds to our strong positioning in specialty engineered fastening, an industry which has solid growth prospects particularly in the global electronics, industrial and automotive end markets, and will further expand our global footprint with its strong concentration in fast-growing emerging markets."

The deal, which is subject to regulatory approval and other closing conditions, is expected to close in the fourth quarter of 2012.

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• Topics
• Exits
• Southeast Asia
• Greater China
• Industrials
• Standard Chartered Private Equity
• CVC Capital Partners
• Exit
• manufacturing
• Trade sale
• Southeast Asia
• China