Stanley Black & Decker Inc. (NYSE: SWK) agreed to buy Newell Brands Inc.’s (NYSE: NEWL) tools business for $1.95 billion in cash to expand in industrial cutting equipment.

The sale includes the Irwin, Lenox and Hilmor brands, Newell said in a statement. The consumer-products company, which owns Elmer’s glue, Mr. Coffee brewers and Graco baby strollers, will use the proceeds to pay down debt, it said. The deal will add 15 cents a share to Stanley Black & Decker’s earnings in the first year after closing, the New Britain, Connecticut-based company said in a separate statement.

The acquisition will help broaden the reach of Stanley Black & Decker’s global tools and storage business, the company said. For Newell, the sale is part of an effort to slim down after its blockbuster  merger with Jarden Corp. in April. That deal created a company with $16 billion in sales and pushed Newell into new categories such as sports and outdoor products.

Newell said this month that it will streamline its portfolio, turning 32 business units into 16 operating divisions. The company said at the time that it would divest about 10 percent of its products, including most of its tools division.

Newell launched its Growth Game Plan in 2012 to create a “larger, faster growing, more global and more profitable company.” One of the purposes of the new strategy is to allow Newell to focus on businesses, such as writing, baby and parenting product lines. Newell won Mergers & Acquisitions’ 2015 M&A Mid-Market Award for Strategic Buyer of the Year. Several consumer companies including Procter & Gamble Co. (NYSE: PG), Church & Dwight Co. (NYSE: CHD) and ConAgra Foods Inc. (NYSE: CAG) have been reshuffling their portfolios through M&A in an effort to boost profits.

The process to sell the other brands is under way and Newell hopes to wrap it up in the first half of next year, the company said Wednesday. Those assets include the Voelkl and K2 winter sports brands, the heaters, humidifiers and fans business and the Rubbermaid consumer storage operations, Newell said.

Chief executive officer Mike Polk said when the Jarden merger was announced that he was aiming to squeeze $500 million in costs out of the business within four years. The company also is moving its headquarters from Atlanta to Hoboken, New Jersey. Jarden had been assembled by Martin E. Franklin, who used acquisitions to build the company’s vast array of brands.

The acquisition will lead to annual cost savings of about $80 million to $90 million after three years, Stanley Black & Decker said. The deal should close in the first half of 2017, it said.

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