Dormakaba has agreed to buy portions of the mechanical security division from Stanley Black & Decker (NYSE: SWK) for $725 million. The deal will help the buyer expand its North American reach to cover door components, including manual doors.
Stanley Black & Decker, based in New Britain, Connecticut, is a provider of tools and storage, security, and industrial products. The deal for the target’s mechanical security division includes the Stanley Commercial Hardware business, which employs nearly 1,000 workers, and a production facility in Taiwan. Stanley Commercial Hardware operates with three premiere brands, including the Best brand, and also manufactures a range of mechanical and security products used in cloud-based electronic locks. The deal does not include Sarget and Greenleaf, a provider of safe locks that also forms a part of the seller’s mechanical security business. Stanley Black & Decker recently purchased the tool business from Newell Brands Inc. (NYSE: NEWL) for approximately $1.95 billion in cash to expand in industrial cutting equipment.
Dormakaba is a Switzerland-based company that also manufactures access systems to the security industry. The buyer’s purchase of Stanley Commercial Hardware will contribute to the buyer’s transition to a top three distributor in the North American market with a full portfolio of door hardware and access control products. Stanley Commercial Hardware’s position in growing vertical markets such as the education and healthcare industries will complement the buyer’s position in the hospitality, multi-housing, and government sectors.
Recent door businesses and construction acquisitions include: Ridgemont Equity Partners, through portfolio company The Cook & Boardman Group, purchased Delta Door and Hardware LLC; Blue Wolf Capital Partners LLC’s acquiring Nacs USA Inc., a North American millwork business, from Tenon Holdings; Southwire Co. LLC’s buying United Copper Industries Inc., a maker of electrical wire, from KPS Capital Partners; United Subcontractors Inc.’s purchase of insulation contractor Southern Foam and Coating; Meridian General Capital’s buying of PowderCoat Services Inc., which provides coating services to construction, automotive, consumer and electronics sectors; and ABC Supply Co.’s purchase of L&W Supply, a distributor of drywall, ceiling tiles and steel framing materials to building contractors, from USG Corp. (NYSE: USG). Willkie Farr & Gallagher LLP is acting as legal counsel to dormakaba on the deal.