Stanley Black & Decker to buy MTD
19 August 2021
MTD brands include Cub Cadet, Troy-Bilt.
Stanley Black & Decker has agreed to acquire the remaining 80% ownership stake in MTD Holdings Inc. a privately held global manufacturer of outdoor power equipment, including Cub Cadet and Troy-Bilt, for $1.6 billion in cash. Stanley Black & Decker acquired a 20% stake in MTD in 2019.
“We have worked directly with MTD over the last three 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,” said Stanley Black & Decker’s CEO James M. 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 7500 employees to our Stanley Black & Decker family.”
MTD’s Chairman, CEO and President Robert T. Moll said, “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. 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.”
With over $2.5 billion of revenue in the last twelve months, MTD 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 under brands such as Cub Cadet and Troy-Bilt. MTD has manufacturing facilities in North America and Europe, and a global distribution network.
Reportedly, MTD has made significant progress in improving its EBITDA margin from 4.5% in 2018 to high single digits over the last twelve months and there is runway for further EBITDA margin improvement to the mid-teens over the next four years as cost and revenue opportunities are realized.
The acquisition, which is subject to regulatory approvals and customary closing conditions, is expected to close in 2021 and will be funded with a combination of cash on hand and proceeds from debt incurrence, which we expect to include support by new credit facilities.