Stanley Black & Decker acquires industrial fastener maker from Doncasters

Stanley Black & Decker (NYSE: SWK) has reached an agreement to purchase Nelson Fastener Systems, a manufacturer of fasteners and studs, from Doncasters Group for approximately $440 million in cash. The acquisition does not include Nelson’s automotive stud welding business, according to the seller.

Founded in 2016, Nelson is a global distributor of fasteners and fastening systems. The target manufactures industrial products made from a variety of materials, including: carbon steels, stainless steel, alloys and more. The Elyria, California-based company operates as a subsidiary of Doncasters serving the aerospace, automotive, construction, energy, industrial, marine and military markets.

Doncasters’ divestiture of Nelson comes as the seller intends to focus on its core specialized markets: aerospace, industrial gas turbine and specialty automotive. The sale will assist Doncasters in paying down “some existing debt as well as provide necessary capital to further invest in these markets and accelerate growth.” The transaction, initially agreed upon in December 2017, is expected to close in the first quarter of 2018.

Stanley Black & Decker, based in New Britain, Connecticut, is a provider of tools and storage, security, and industrial products. The buyer manufactures a vast range of mechanical and general industrial products. Nelson is intended to deliver cost synergies and expand Stanley Black & Decker’s portfolio of fastening tools.

Stanley Black & Decker has been quite active with its M&A efforts. The company has previously sold its door and mechanical security business to Dormakaba, and purchased the tool business from Newell Brands Inc. (NYSE: NEWL) for approximately $1.95 billion in cash to expand in industrial cutting equipment.

Stanley Black and Decker bloomberg photo
The Stanley Black & Decker Inc. logo is seen on a lawnmower on display at the Home Depot Inc. store in Emeryville, California, U.S., on Tuesday, June 28, 2011. Stanley Black & Decker agreed to buy Sweden’s Niscayah Group AB for 7.6 billion kronor ($1.2 billion) yesterday, June 27, 2011, its largest deal excluding Stanley Works’s $4.4 billion purchase of Black & Decker Corp. announced in 2009 combining the two biggest U.S. toolmakers. Photographer: David Paul Morris/Bloomberg *** Local Caption ***

For reprint and licensing requests for this article, click here.