Stanley Black & Decker Announces Agreement to Sell Consolidated Aerospace Manufacturing Business to Howmet Aerospace for $1.8 Billion

Stanley Black & Decker (NYSE: SWK) has agreed to sell its Consolidated Aerospace Manufacturing (CAM) business to Howmet Aerospace for $1.8 billion in cash.

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

Argus Dec 22 session

+3.42% close to close Open Argus

Details

News Market Reaction – SWK

In the Dec 22 session, SWK gained 3.42%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement outlines a major portfolio move: selling CAM to Howmet Aerospace for $1.8 billion ...

Analysis

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 Figures

CAM sale price: $1.8 billion CAM FY25 revenue: $405–$415 million Target leverage ratio: 2.5x +2 more

CAM sale price

$1.8 billion

Cash consideration from Howmet Aerospace for CAM

CAM FY25 revenue

$405–$415 million

Expected FY 2025 CAM revenue

Target leverage ratio

2.5x

Net debt to adjusted EBITDA goal after transaction

Expected close

First half 2026

Anticipated CAM divestiture closing timeline

Employees

48,000

Approximate global headcount of Stanley Black & Decker

Historical Context

5 past events · Latest: Dec 09

5 events

1. Dec 09

   Charitable partnership

   24h Move

   -0.7%

   DEWALT and White Cap announced a major St. Jude fundraising partnership.

2. Dec 03

   Executive appointment

   24h Move

   +1.8%

   Company appointed a new Chief Global Supply Chain Officer with extensive experience.

3. Nov 20

   Investor conference

   24h Move

   +0.5%

   Announcement of participation in Goldman Sachs Industrials and Materials Conference.

4. Nov 05

   Investor conference

   24h Move

   +4.5%

   Planned presentation at Baird's 2025 Global Industrial Conference.

5. Oct 31

   Board change

   24h Move

   -2.0%

   Election of experienced former CEO Mary Laschinger to the Board.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

net debt, adjusted EBITDA, leverage ratio, regulatory approval

4 terms

net debt financial

"target leverage ratio of 2.5 times net debt to adjusted EBITDA."

Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.

View in glossary

adjusted EBITDA financial

"target leverage ratio of 2.5 times net debt to adjusted EBITDA."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

leverage ratio financial

"positioning us to achieve our target leverage ratio of 2.5 times net debt"

Leverage ratio measures how much a company relies on borrowed money compared with its own funds or assets, typically expressed as debt relative to equity or total assets. Like a homeowner with a mortgage, higher leverage can amplify returns when business is strong but also raises the chance of big losses or default if revenue falls, so investors use it to judge financial risk and resilience.

View in glossary

regulatory approval regulatory

"expected to close in the first half of 2026 and is subject to regulatory approval"

Regulatory approval is the official permission given by government agencies or authorities that allows a product, service, or business activity to be legally operated or sold. It is important to investors because receiving approval often indicates that a product has been reviewed for safety and compliance, which can influence its success and the company’s prospects in the market. Without this approval, launching or selling certain products may be restricted or prohibited.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW BRITAIN, Conn., Dec. 22, 2025 /PRNewswire/ -- Stanley Black & Decker (NYSE: SWK) today announced it has entered into a definitive agreement to sell its Consolidated Aerospace Manufacturing ("CAM") business to Howmet Aerospace for $1.8 billion in cash. CAM provides critical fasteners, fittings, and other engineered components for the aerospace and defense industries.

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 $405 to $415 million, with an adjusted EBITDA margin percentage approaching the high-teens. Stanley Black & Decker expects to utilize the net cash proceeds of the transaction to reduce debt.

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 USA, Stanley Black & Decker (NYSE: SWK) is a worldwide leader in Tools and Outdoor, operating manufacturing facilities globally. The Company's approximately 48,000 employees produce innovative end-user inspired power tools, hand tools, storage, digital jobsite solutions, outdoor and lifestyle products, and engineered fasteners to support the world's builders, tradespeople and DIYers. The Company's world class portfolio of trusted brands includes DEWALT®, CRAFTSMAN®, STANLEY®, BLACK+DECKER®, and Cub Cadet®. To learn more visit: www.stanleyblackanddecker.com or follow Stanley Black & Decker on Facebook, Instagram, LinkedIn and X. 

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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much is Stanley Black & Decker selling CAM for (NYSE: SWK)?

Stanley Black & Decker agreed to sell CAM to Howmet Aerospace for $1.8 billion in cash.

What revenue and margin does CAM expect to generate in FY2025 (SWK)?

CAM is expected to generate $405–$415 million in FY2025 revenue with an adjusted EBITDA margin approaching the high-teens.

When is the CAM transaction expected to close and what conditions apply to SWK?

The transaction is expected to close in the first half of 2026 and is subject to regulatory approval and customary closing conditions.

How will the $1.8 billion CAM sale affect Stanley Black & Decker's (SWK) debt targets?

The company expects to use net cash proceeds to reduce debt and target a leverage ratio of 2.5x net debt to adjusted EBITDA.

Will CAM be treated as discontinued operations on SWK financials after the sale announcement?

No; until the transaction closes, CAM's results will remain in continuing operations and will not be reclassified as discontinued operations.