Stanley Black & Decker Announces Agreement to Sell Consolidated Aerospace Manufacturing Business to Howmet Aerospace for $1.8 Billion
Rhea-AI Summary
Stanley Black & Decker (NYSE: SWK) has agreed to sell its Consolidated Aerospace Manufacturing (CAM) business to Howmet Aerospace for $1.8 billion in cash.
CAM is expected to generate FY2025 revenue of $405–$415 million with an adjusted EBITDA margin approaching the high-teens. Stanley Black & Decker intends to use net proceeds to reduce debt and target a leverage ratio of 2.5x net debt to adjusted EBITDA. The transaction remains subject to regulatory approval and customary closing conditions and is expected to close in the first half of 2026. Until closing, CAM results remain in continuing operations.
Positive
- Deal value of $1.8 billion in cash
- FY2025 revenue for CAM of $405–$415 million
- CAM adjusted EBITDA margin approaching high-teens
- Proceeds planned to reduce debt to reach 2.5x net debt/adjusted EBITDA target
Negative
- Sale removes approximately $405–$415 million of FY2025 revenue from the company post-close
- Transaction is subject to regulatory approval and customary closing conditions
- Until closing, CAM results remain in continuing operations, complicating near-term comparability
News Market Reaction
On the day this news was published, SWK gained 3.42%, reflecting a moderate positive market reaction. This price movement added approximately $373M to the company's valuation, bringing the market cap to $11.27B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Peers show mixed, mostly modest gains: LECO, RBC, SNA and TKR are up between 0.05% and 0.78%, while TTC is down 0.08%. With sector momentum flagged as non-broad-based, the CAM sale appears more company-specific than an industry-wide move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 09 | Charitable partnership | Positive | -0.7% | DEWALT and White Cap announced a major St. Jude fundraising partnership. |
| Dec 03 | Executive appointment | Positive | +1.8% | Company appointed a new Chief Global Supply Chain Officer with extensive experience. |
| Nov 20 | Investor conference | Neutral | +0.5% | Announcement of participation in Goldman Sachs Industrials and Materials Conference. |
| Nov 05 | Investor conference | Neutral | +4.5% | Planned presentation at Baird's 2025 Global Industrial Conference. |
| Oct 31 | Board change | Positive | -2.0% | Election of experienced former CEO Mary Laschinger to the Board. |
Recent headlines have been largely strategic and governance-focused, with three of five prior news events seeing price moves aligned with generally positive or neutral sentiment.
Over the past few months, Stanley Black & Decker has highlighted governance, investor outreach, and brand-related initiatives. Board and management updates on Nov 1 and Dec 3 coincided with mixed share reactions, while conference presentations on Nov 12 and Dec 4 saw positive moves. A charitable DEWALT partnership announced on Dec 9 drew a modest decline. Today’s planned sale of CAM for $1.8 billion and debt reduction focus extends this strategic repositioning theme.
Market Pulse Summary
This announcement outlines a major portfolio move: selling CAM to Howmet Aerospace for $1.8 billion in cash, with proceeds planned for debt reduction toward a 2.5x net debt to adjusted EBITDA target. CAM is expected to deliver $405–$415 million of FY 2025 revenue. The deal, targeted to close in the first half of 2026 subject to regulatory approval, continues a stream of strategic and governance updates in recent months.
Key Terms
net debt financial
adjusted EBITDA financial
leverage ratio financial
regulatory approval regulatory
AI-generated analysis. Not financial advice.
Chris Nelson, Stanley Black & Decker's President & CEO, stated, "Divesting CAM reflects our ongoing dedication to enhancing shareholder value and focusing on growing our biggest brands and businesses. The proceeds from this transaction are expected to significantly reduce our debt, positioning us to achieve our target leverage ratio of 2.5 times net debt to adjusted EBITDA. After achieving this critical financial goal, we will have greater flexibility to pursue additional value-creation opportunities through a more agile capital allocation strategy. I am confident that CAM, along with its talented team, will thrive as part of Howmet Aerospace. I would also like to express my appreciation to all CAM employees for their exceptional dedication and remarkable contributions, which have been instrumental to CAM's success."
CAM is expected to generate FY 2025 revenue of approximately
Until the transaction closes, the results of CAM will remain in continuing operations and will not be reclassified as discontinued operations. The transaction is expected to close in the first half of 2026 and is subject to regulatory approval and other customary closing conditions.
About Consolidated Aerospace Manufacturing (CAM)
Consolidated Aerospace Manufacturing (CAM) is a leading global group of manufacturers providing critical fasteners, fittings, and engineered components for the aerospace and defense industries, known for its portfolio of trusted brands like Aerofit, Voss, and QRP and its focus on high-performance, complex solutions for major aircraft platforms. CAM emphasizes innovation, quality, and lean manufacturing, supplying products for everything from commercial jets (Boeing, Airbus) to defense applications, including specialized items like quick-release pins, latches, and tube assemblies. Learn more at camaerospace.com.
About Stanley Black & Decker
Founded in 1843 and headquartered in the
Cautionary Note Regarding Forward-Looking Statements
Stanley Black & Decker makes forward-looking statements in this press release which represent its expectations or beliefs about future events and financial performance. Forward-looking statements are identifiable by words such as "believe," "anticipate," "expect," "intend," "plan," "will," "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Forward-looking statements made in this press release, include, but are not limited to, statements concerning: consummation of the CAM sale transaction; the Company's ability to maximize value for shareholders through active portfolio management and the impact of the transaction to fund debt reduction; and supporting the Company's capital allocation strategy.
You are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are not guarantees of future events and involve risks, uncertainties and other known and unknown factors that may cause actual results and performance to be materially different from any future results or performance expressed or implied by such forward-looking statements, including, but not limited to, the failure to consummate, or a delay in the consummation of, the CAM sale transaction for various reasons; (including but not limited to failure to receive, or delay in receiving, required regulatory approvals and meet customary closing conditions); and failure to realize the expected benefits of the Company's value creation, debt reduction and capital allocation strategy.
Forward-looking statements made herein are also subject to risks and uncertainties, described in: Stanley Black & Decker's 2024 Annual Report on Form 10-K, its subsequently filed Quarterly Reports on Form 10-Q; and other filings Stanley Black & Decker makes with the Securities and Exchange Commission. In addition, actual results could differ materially from those suggested by the forward-looking statements, and therefore you should not place undue reliance on the forward-looking statements. Stanley Black & Decker makes no commitment to revise or update any forward-looking statements to reflect events or circumstances occurring or existing after the date of any forward-looking statement.
The Company has provided an expectation of forward-looking adjusted EBITDA margin, which is a non-GAAP measure. A reconciliation of the differences between this non-GAAP forward-looking measure and the corresponding GAAP measure (expected net income) is generally not available without unreasonable effort due to potentially high variability and complexity as to the items that would be excluded from the GAAP measure on a forward-looking basis, and would imply a degree of precision that is inappropriate for this forward-looking measure.
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SOURCE Stanley Black & Decker, Inc.
FAQ
How much is Stanley Black & Decker selling CAM for (NYSE: SWK)?
What revenue and margin does CAM expect to generate in FY2025 (SWK)?
When is the CAM transaction expected to close and what conditions apply to SWK?
How will the $1.8 billion CAM sale affect Stanley Black & Decker's (SWK) debt targets?
Will CAM be treated as discontinued operations on SWK financials after the sale announcement?
