On June 28, New Britain, Connecticut-based tool manufacturer Stanley Black & Decker announced it has signed a definitive agreement for the sale of its Stanley Oil & Gas business to Pipeline Technique Limited.
The sale encompasses pipeline services and equipment businesses including CRC-Evans Pipeline International, Pipeline Induction Heat Ltd. and Stanley Inspection, which generated combined revenues of approximately $140 million in 2021.
“The sale of our oil and gas business builds on our strategic commitment to streamlining our company to focus on our core Tools & Outdoor and Industrial businesses,” said Don Allan, Stanley Black and Decker’s president & CFO. “The portfolio simplification is designed to leverage our leadership positions to drive innovation, organic growth and margin expansion, as well as generate significant long-term value for our shareholders.”
The news of the sale comes four weeks after Stanley Black & Decker announced that Allan will be appointed CEO on July 1. The company will report its 2022 second-quarter earnings July 28.
Stanley Black & Decker expects to incur a pre-tax, non-cash charge of approximately $125 to $200 million related to the write-down of the Oil & Gas net assets, which will be excluded from adjusted earnings. The results of the Oil & Gas business will remain in continuing operations and will not be reclassified as discontinued operations. The transaction is subject to regulatory approval and other customary closing conditions, the company said.
In addition to the leadership announcement, the company plans to invest up to $250 million…
The innovation division of Stanley Black & Decker said Michelle Bockman has been appointed president.
The company’s recent choices raise the question: Will other similar distributors reduce their exposure to…