On August 17, Stanley Black & Decker announced plans to buy the remaining 80% of MTD Holdings Inc.’s stock for $1.6 billion in cash after previously buying a 20% stake in 2019.
In addition to lawn tractors like the Cub Cadet, MTD also makes push lawn mowers, snow blowers, robotic lawn mowers, outdoor power equipment and garden tools. The smaller company, which is headquartered in Valley City, Ohio and employs 7,500 people, made more than $2.5 billion in revenue in the past 12 months.
Stanley Black & Decker, which landed at #78 on the 2021 IW 500, is headquartered in Connecticut and has 56,000 employees in 60 countries around the world. The tool and storage manufacturing company made $14.5 billion of revenue in 2020. The companies expect the deal to close sometime this year and anticipate the combined company will save $100 million in cumulative annual costs by 2025.
CEO James M. Loree of Stanley praised the quality of MTD’s management and said the companies’ combination would create a “global leader” in outdoors products.
“We have worked directly with MTD over the last 3 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 Loree in a statement. “We have clearly identified multiple levers to drive growth and margin expansion.”
Robert T. Moll, president of MTD, said he was excited about the company’s future with Stanley.
“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,” said Moll.
This article has been updated.
