Stanley Black & Decker (NYSE: SWK) has entered into a definitive agreement to acquire Excel Industries for $375 million in cash.
Excel is a leading designer and manufacturer of premium commercial and residential turf-care equipment under the distinct brands of Hustler Turf Equipment (Hustler) and BigDog Mower Co. (BigDog). With more than $375 million of revenue forecasted in 2021, Excel serves approximately 1,400 active independent equipment dealer outlets that stock, sell and service Hustler and BigDog products in the United States and Canada. Excel has a strong legacy of innovation and launched the first hydrostatic zero-turn mower in 1964. Excel is located in Hesston, Kan., and has approximately 600 employees.
Stanley Black & Decker’s CEO James M. Loree commented, “This is a strategically important bolt-on acquisition as we build an outdoor products leader. Excel brings a range of premier, commercial grade and prosumer turf-care equipment, an extensive dealer network, a talented team and a loyal customer base.”
The acquisition will be modestly accretive to Stanley Black & Decker’s EPS in year one, and accretive to EPS by approximately $0.15 – $0.20 by year three, excluding charges. The transaction, which has been approved by a majority of Excel’s shareholders, is subject to purchase price adjustment provisions and customary closing conditions, including receipt of required regulatory approvals. The transaction will be funded with cash on hand and proceeds from borrowings.
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