by Kyle Molyneux | Tue 19 Dec 2023
Epiroc to acquire Stanley Infrastructure
Swedish manufacturer Epiroc AB has agreed to acquire Stanley Infrastructure, a global manufacturer of excavator attachments and handheld hydraulic tools, from Stanley Black & Decker, Inc. Epiroc says the acquisition will strengthen its presence in the attachments business in infrastructure and construction, especially in the United States.
Stanley Infrastructure, a business within Stanley Black & Decker’s Industrial business segment, is headquartered in Milwaukie, Oregon, United States. It designs, manufactures, and sells attachments, typically used on excavators, and handheld hydraulic and battery-powered tools for applications in infrastructure, construction, scrap recycling, demolition, and railroad infrastructure. Its brands include LaBounty, Paladin, Pengo and Dubuis.
Stanley Infrastructure has estimated revenues in 2023 in the range of $450m to $470m (£355m-£380m), an EBITDA margin in the mid-to-high teens, and about 1,380 employees, mainly in the United States. The business has 10 key production facilities, in the United States, Canada, France, and China. The vast majority of the revenues are generated in North America.
“We are very excited about this strategic acquisition, which is a major step to strengthen our long-term presence in the infrastructure and construction industries,” said Helena Hedblom, Epiroc’s President and CEO. “Stanley Infrastructure has industry-leading products, services and solutions with renowned brands, solid customer relationships, and a strong people culture, which all makes this a perfect fit for Epiroc.
“Our product portfolios complement each other very well, and this fills some important gaps in our current offering,” Helena continued. “In addition, we gain access to a broad indirect sales network, which will further diversify and strengthen our footprint. Infrastructure and construction have attractive drivers that include urbanisation and scrap recycling for steel production, which will support long-term growth.”
The purchase price is $760m (£600m) The acquisition is an all-cash transaction with secured financing through a bridge facility. The acquisition is subject to customary regulatory filings and is expected to be completed in the first quarter 2024.
During the previous few months, Epiroc confirmed its intention to acquire Weco Proprietary Limited in South Africa. In recent times, Epiroc has also taken over Mernok Elektronik, which is another South African company, and Wain-Roy based in the USA.
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