Stanley Black & Decker, Inc. (NYSE:SWK) shares are trading higher Monday after the company announced it will sell its Consolidated Aerospace Manufacturing business to Howmet Aerospace.
- Stanley Black & Decker shares are powering higher. What’s driving SWK stock higher?
What To Know: Stanley Black & Decker entered into a definitive agreement to sell its Consolidated Aerospace Manufacturing business to Howmet Aerospace for $1.8 billion in cash. The company said the divestiture reflects its focus on enhancing shareholder value and concentrating on its core brands and businesses.
Stanley Black & Decker expects to use the net cash proceeds from the transaction to significantly reduce debt, targeting a leverage ratio of 2.5 times net debt to adjusted EBITDA. The company said reaching that target would provide greater flexibility for future capital allocation.
Consolidated Aerospace Manufacturing is expected to generate fiscal year 2025 revenue of approximately $405 million to $415 million, with an adjusted EBITDA margin approaching the high-teens.
The transaction is expected to close in the first half of 2026, subject to regulatory approval and customary closing conditions. Until the transaction closes, Consolidated Aerospace Manufacturing’s results will remain in continuing operations and will not be reclassified as discontinued operations.
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SWK Price Action: At the time of writing, Stanley shares are trading 3.88% higher at $75.57, according to data from Benzinga Pro.
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