Stanley Black & Decker has recently announced acquisition plans of both MTD Holdings Inc. and Excel Industries.
Excel designs commercial and residential turf-care equipment under the Hustler Turf Equipment (Hustler) and BigDog Mower Co. (BigDog). Located in Hesston, Kansas, Excel has approximately 600 employees and serves 1,400 active independent equipment dealer outlets that stock, sell and service Hustler and Big Dog products in the United States and Canada.
"This is a strategically important bolt-on acquisition as we build an outdoor products leader,” says James Lorree, Stanley Black & Decker CEO. “Excel brings a range of premier, commercial grade and prosumer turf-care equipment, an extensive dealer network, a talented team and a loyal customer base."
Per the agreement the acquisition is for $375 million cash.
This marks the second acquisition within the turf industry Stanley Black and Decker has made in 2021.
In August, the Stanley Black and Decker announced a $1.6 billion agreement to acquire the remaining 80% ownership stake in MTD Holdings Inc., a privately held manufacturer of outdoor equipment under brands including Cub Cadet and Troy-Bilt.Cub Cadet
"We have worked directly with MTD over the last 3 years and have been impressed with the quality of the management team, their talented employees and MTD's relentless dedication to innovation in the outdoor space," says Loree. "The combination of businesses will create a global leader in the $25 billion and growing outdoor category, with strong brands and growth opportunities that align with two market trends driving our business – the consumer reconnection with the home and garden and electrification. We have clearly identified multiple levers to drive growth and margin expansion and are looking forward to welcoming MTD's 7,500 employees to our Stanley Black & Decker family."
In August, it was reported that MTD had over $2.5 billion of revenue in the last twelve months. The company designs, manufactures and distributes lawn tractors, zero turn mowers, walk behind mowers, snow blowers, residential robotic mowers, handheld outdoor power equipment and garden tools for both residential and professional consumers. The company’s brands include Cub Cadet, Yard Machines, Troy-Bilt, Robomow, Rover, and WOLF-Garten. It has state-of-the-art manufacturing facilities in North America and Europe, and a global distribution network.
"My grandfather founded MTD nearly 90 years ago, and I'm as proud of our history as I am excited about our future with Stanley Black & Decker,” says Robert T. Moll, MTD chairman, CEO and president. “Both companies are proven leaders in our respective industries with iconic brands, world class capabilities and a passion for bringing new and innovative products to our consumers. I know we are partnering with an organization that will continue to deliver on our purpose of inspiring people to care for and enjoy the outdoors."
“The acquisition of MTD creates a multi-year roadmap for organic revenue, profitability and cashflow growth,” says Donald Allan Jr., Stanley Black & Decker president and CFO. “We expect to generate significant revenue synergies as we capitalize on the two companies' collective technology investments, strong brands and global customer relationships. We are excited to begin the next phase of our journey with MTD to realize these benefits and build an innovative outdoor products leader."
Together Stanley Black & Decker, MTD and Excel have a compelling pathway to introduce new and innovative products for professional and residential outdoor equipment customers.
