Epiroc to acquire STANLEY Infrastructure brands including LaBounty, Paladin, and more
Epiroc has agreed to acquire STANLEY Infrastructure - a global manufacturer of excavator attachments and handheld hydraulic tools - from Stanley Black & Decker, Inc. The strategic acquisition will strengthen Epiroc's presence in the attachments business, especially in the United States.
STANLEY Infrastructure is headquartered in Milwaukie, Oregon, United States. It designs, manufactures, and sells attachments typically used on excavators, as well as 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 MUSD 450 to MUSD 470 (SEK 4.6 billion to SEK 4.8 billion), 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," says 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. 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 urbanization and scrap recycling for steel production, which will support long-term growth."
"Customers will benefit from having access to a more complete product portfolio, which we together will continue to develop to meet customers' increasing need for versatility and productivity," says Goran Popovski, president of Epiroc's Tools & Attachments division. "We look forward to welcoming the great team at STANLEY Infrastructure to the Epiroc Group, and to grow successfully together."
The purchase price is MUSD 760 (SEK 7.8 billion.) 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.