Private equity firms CVC, Standard Chartered exit Hong Kong-based Infastech

US diversified industrial company Stanley Black & Decker Inc (NYSE: SWK) announced the signing of a definitive agreement to acquire Hong Kong-headquartered Infastech for USD850m (EUR701m) payable in cash.

The business is being sold by private equity groups CVC Capital Partners Ltd and Standard Chartered Private Equity Ltd. Stanley Black & Decker expects to close the transaction during the final quarter of this year provided that regulators see no reason to object and other standard conditions are satisfied.

Infastech specialises in engineered mechanical fasteners and is one of the biggest players on the market. The company employs more than 2,000 people and generates revenues of about USD500m. The acquisition is expected to deliver annual savings of some USD25m within three years after completion.

Stanley Black & Decker estimates the EPS contribution during its first year of ownership at USD0.15 and expects the amount to reach USD0.35 per share during the third year. The projections exclude acquisition-related charges, which will mostly affect results in the first two years and are estimated at between USD25m and USD30m.

John F. Lundgren, president and CEO of Stanley Black & Decker, noted that the acquisition was a perfect fit in strategic terms besides being a highly accretive one. It will strengthen the company’s position in the speciality engineered fastening segment, where Stanley Black & Decker sees considerable growth potential, especially in the electronics, industrial and automotive end markets.

As a result of this deal, Stanley Black & Decker will get to expand further its global presence, benefiting from Infastech’s strong footprint in high-growth emerging markets. Infastech will be a great complement to Emhart Teknologies,  Stanley Black & Decker’s engineered fastening business, expanding its product offer and enhancing the company’s IP portfolio and R&D capabilities, Lundgren stated.