Big things are afoot in the fastener industry. According to several news reports last week, Stanley Black & Decker Acquires Infastech, aย Hong Kong-based fastener manufacturer, for $850ย millionโฆin cash. Infastech makesย engineered mechanical fasteners โ in fact, they are one of the worldโs largest companies that does so and they cater to the industrial, electronics,ย automotive, construction, and aerospace industries. The company had a half a billion inย revenues last year, and employs around 2000 people. Also, over 50% of their revenues were generated in the growing Asia-Pacific region. While you may be unfamiliar with the parent company name, if youโre in the industry (or the region), youโll have heard of some of their brands: Avdel, ELCO,ย and iForm.
Stanley Black & Decker Acquires Infastech
So why is Stanley Blackย & Decker interested? Well, the company reportedly seeks to combine the powers of Infastech withย Emhart, its own engineered fastening product line. If all goes according to plan, the combined business could take in 40% of its revenues from the Asia-Pacificย region. Thatโs an enormous market that only looks like it will continue to grow for the foreseeable future. Theย combined engineered fastening group is slated to bring in approximately 50% ofย its revenues from the automotive industry, 33% from industrialย fastening applications, and 20% from what it calls โhigh-growth verticalsโ, likeย electronics.
But whatโs really interesting is the fact that Powers Fasteners was just acquired by Stanley Black & Decker just a month ago. That acquisition was about enabling the company to provide a comprehensive tool and anchoringย packageย to the industry โ this according to Jeff Powers, CEO ofย Powers Fasteners. The idea is that Stanley Black & Decker tools will be specโd into commercial contracts alongside fastening products. Its a massively important business move and seeing this latest acquisition, we have to wonder if this is a similar move in the Asia-Pacific region. If so, itโs equally genius.
Stanley Black & Decker expects to close the Infastech purchase during the fourth quarter of 2012.
