Stanley Black & Decker has entered into an agreement to sell its Consolidated Aerospace Manufacturing (CAM) business to Howmet Aerospace.
The transaction is valued at US$1.8 billion and will be completed in cash. CAM provides critical fasteners, fittings and other engineered components for the aerospace and defence industries.
“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,” said Chris Nelson, President and CEO of Stanley Black & Decker.
The company added that the transaction is expected to generate FY2025 revenue of approximately US$405 million to US$415 million.
The transaction is expected to be completed in the first half of 2026.
Looking ahead, Stanley Black & Decker said it 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,” Nelson added.
