Stanley Black and Decker has announced it will acquire a 20% stake in MTD Products for $234 million in cash.
MTD is a privately-held global manufacturer of outdoor power equipment,with revenues in excess of $2 billion last year.
Stanley Black and Decker will have the option to acquire the remaining 80% of MTD in July, 2021.
Stanley Black & Decker is a global provider of hand tools, power tools and related accessories, as well as providing electronic security solutions, healthcare solutions, and engineered fastening systems.
Stanley Black & Decker's President and CEO James M. Loree commented, "This investment in MTD increases our presence in the $20 billion global lawn and garden market in a financially and operationally prudent way. We have always viewed outdoor products as an attractive growth category for us to expand our presence beyond handheld electric products."
"This transaction gives us the opportunity to do that with a world class partner. MTD has a first-rate management team, talented employees and a mission, values and commitment to innovation that are very closely aligned with our own, and we are excited to move forward with them."
Ohio-based MTD manufacturers and distributes law tractors, zero-turn and walk-behind mowers, chainsaws and utility vehicles. MTD produces outdoor power equipment for both residential and professional lawn and garden customers throughout its global distribution network.
The transaction is expected to be complete in early 2019, with Stanley Black and Decker appointing two representatives to MTD's Board of Directors.