NEW BRITAIN, Conn. (AP) — Tool maker Stanley Black & Decker Inc. said Monday that it will pay $850 million in cash for Infastech, a Hong Kong company that makes fasteners.
Stanley Black & Decker said the purchase from CVC Capital Partners and Standard Chartered Private Equity Ltd. would add 15 cents per share to its earnings in the first year and 35 cents per share by the third year excluding acquisition-related costs of $25 million to $30 million.
Stanley said the purchase will result in annual cost savings of $25 million within three years.
The deal is expected to close in the fourth quarter.
Infastech has annual revenue of about $500 million and more than 2,000 employees. It designs and makes engineered fastening technologies for manufacturers in electronics, autos, aerospace and construction under brands including Avdel and ELCO. More than half its 2011 revenue came from the Asia-Pacific region.
Stanley said it will be combined with its Emhart Teknologies division.
Stanley shares closed at $64.99, down $1.46 or 2.2 percent.