Stanley Black&Decker Inc., a global provider of tools and accessories, industrial tools, and security products and services has announced it has reached agreement to purchase the tool business from Newell Brands for $1.95 billion. As a result of the acquisition, likely to close in the first half of 2017, we expect Stanley's debt-to-EBITDA leverage to increase to about 2.4x after closing, with leverage decreasing to 2x or below within 12 months from debt repayment, improved EBITDA, and surplus cash balances. We are affirming our ratings on Stanley, including the 'A' corporate credit rating on the company. The outlook is stable, reflecting our view that Stanley will reduce leverage to below 2x within several quarters of the acquisition and
