Stanley Black & Decker Announces $2.0 Billion Accelerated Share Repurchase Program

Rhea-AI Summary

Stanley Black & Decker (NYSE: SWK) announced a $2.0 billion accelerated share repurchase program, demonstrating its commitment to enhancing shareholder value. This is part of a larger $4 billion share repurchase initiative planned for 2022. The initial payment will be funded through existing credit agreements, with approximately 10.8 million shares expected to be delivered initially. The final number of shares will be determined based on market conditions. This strategic move reflects confidence in the company's long-term growth and margin expansion prospects.

Positive

• Initiation of a $2.0 billion accelerated share repurchase program enhances shareholder value.
• Part of a $4 billion repurchase program signals strong confidence in long-term growth.
• Initial delivery of 10.8 million shares reinforces commitment to capital allocation.

Negative

• None.

NEW BRITAIN, Conn., March 2, 2022 /PRNewswire/ -- Stanley Black & Decker (NYSE: SWK) (the "Company") today announced it entered into certain accelerated share repurchase agreements ("ASR Agreements") with Bank of America, N.A. and Citibank, N.A (the "Counterparties") to repurchase an aggregate of $2.0 billion of the Company's common stock.  This program is in addition to $0.3 billion of open market repurchases completed quarter to date.  

"Today's announcement demonstrates confidence in Stanley Black & Decker's long-term strategy and our commitment to delivering shareholder value through disciplined capital allocation. These repurchase actions are a significant step to complete our expected $4 billion share repurchase in 2022," said Stanley Black & Decker's CEO Jim Loree. "These repurchases come as we look to deliver another strong year in 2022 and continue to position the business for a multi-year runway for growth and margin expansion. This program is an attractive use of capital and represents a compelling value."

The ASR Agreements were entered into pursuant to the Company's current authorization to repurchase up to the greater of $2.5 billion of common stock or 20 million shares of common stock.  The Company intends to fund the initial payment pursuant to the ASR Agreements through borrowings under one of the Company's existing 364-day credit agreements.

Under the ASR Agreements, the Company will make an initial payment of $2 billion to the Counterparties and will receive an aggregate initial delivery of approximately 10.8 million shares of common stock on March 2, 2022.  The final number of shares to be repurchased will be based on the volume-weighted average price of the Company's common stock during the terms of the transactions, less a discount and subject to adjustments pursuant to the terms of the ASR Agreements, and the final settlements under the ASR Agreements are expected to be completed in the second quarter of 2022. At settlement, the Counterparties may be required to deliver additional shares of common stock to the Company, or, under certain circumstances, the Company may be required to deliver shares of its common stock or may elect to make a cash payment to the Bank Counterparties.

About Stanley Black & Decker

Headquartered in the USA, Stanley Black & Decker (NYSE: SWK) is the world's largest tool company operating nearly 50 manufacturing facilities across America and more than 100 worldwide. Guided by its purpose – for those who make the world – the company's more than 60,000 diverse and high-performing employees produce innovative, award-winning power tools, hand tools, storage, digital tool solutions, lifestyle products, outdoor products, engineered fasteners and other industrial equipment to support the world's makers, creators, tradespeople and builders. The Company's iconic brands include DEWALT, BLACK+DECKER, CRAFTSMAN, STANLEY, Cub Cadet, Hustler and Troy-Bilt. Recognized for its leadership in environmental, social and governance (ESG), Stanley Black & Decker strives to be a force for good in support of its communities, employees, customers and other stakeholders. To learn more visit: www.stanleyblackanddecker.com.

Investor Contacts:

Dennis Lange
Vice President, Investor Relations
dennis.lange@sbdinc.com 
(860) 827-3833

Cort Kaufman
Sr. Director, Investor Relations
cort.kaufman@sbdinc.com 
(860) 515-2741

Christina Francis
Director, Investor Relations
christina.francis@sbdinc.com 
(860) 438-3470

Media Contacts:

Shannon Lapierre
Chief Communications Officer
shannon.lapierre@sbdinc.com
(860) 259-7669

Debora Raymond
Vice President, Public Relations
debora.raymond@sbdinc.com 
(203) 640-8054

CAUTIONARY STATEMENTS

Under the Private Securities Litigation Reform Act of 1995

This document contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including any projections or guidance of earnings, revenue or other financial items; growth or margin expansion; or any expected funding source for the repurchases; any statements of belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include, among others, the words "may," "will," "estimate," "intend," "continue," "believe," "expect," "anticipate" or any other similar words.

Although the Company believes that the expectations reflected in any of its forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of its forward-looking statements. The Company's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, such as those disclosed or incorporated by reference in the Company's filings with the Securities and Exchange Commission.

Important factors that could cause the Company's actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in its forward-looking statements include, among others, the following: (i) successfully developing, marketing and achieving sales from new products and services and the continued acceptance of current products and services; (ii) macroeconomic factors, including global and regional business conditions (such as Brexit), commodity prices, inflation and deflation, and currency exchange rates; (iii) laws, regulations and governmental policies affecting the Company's activities in the countries where it does business, including those related to tariffs, taxation, data privacy, anti-bribery, anti-corruption, government contracts and trade controls such as section 301 tariffs and section 232 steel and aluminum tariffs; (iv) the economic, political, cultural and legal environment of emerging markets, particularly Latin America, Russia, China and Turkey; (v) realizing the anticipated benefits of mergers, acquisitions, joint ventures, strategic alliances or divestitures; (vi) pricing pressure and other changes within competitive markets; (vii) availability and price of raw materials, component parts, freight, energy, labor and sourced finished goods; (viii) the impact the tightened credit markets and change to LIBOR and other benchmark rates may have on the Company or its customers or suppliers; (ix) the extent to which the Company has to write off accounts receivable or assets or experiences supply chain disruptions in connection with bankruptcy filings by customers or suppliers; (x) the Company's ability to identify and effectively execute productivity improvements and cost reductions; (xi) potential business and distribution disruptions, including those related to physical security threats, information technology or cyber-attacks, epidemics, pandemics, sanctions, political unrest, war, terrorism or natural disasters; (xii) the continued consolidation of customers, particularly in consumer channels and the Company's continued reliance on significant customers; (xiii) managing franchisee relationships; (xiv) the impact of poor weather conditions and climate change; (xv) maintaining or improving production rates in the Company's manufacturing facilities, responding to significant changes in customer preferences, product demand and fulfilling demand for new and existing products, and learning, adapting and integrating new technologies into products, services and processes; (xvi) changes in the competitive landscape in the Company's markets; (xvii) the Company's non-U.S. operations, including sales to non-U.S. customers; (xviii) the impact from demand changes within world-wide markets associated with homebuilding and remodeling; (xix) potential adverse developments in new or pending litigation and/or government investigations; (xx) the incurrence of debt and changes in the Company's ability to obtain debt on commercially reasonable terms and at competitive rates; (xxi) substantial pension and other postretirement benefit obligations; (xxii) potential regulatory liabilities, including environmental, privacy, data breach, workers compensation and product liabilities; (xxiii) attracting and retaining key employees, managing a workforce in many jurisdictions, work stoppages or other labor disruptions; (xxiv) the Company's ability to keep abreast with the pace of technological change; (xxv) changes in accounting estimates; (xxvi) the Company's ability to protect its intellectual property rights and associated reputational impacts; (xxvii) the continued adverse effects of the COVID-19 pandemic and an indeterminate recovery period; (xxviii)  the possibility that the Company does not achieve the intended financial benefits from the acquisition of MTD; (xxix) the failure to consummate, or a delay in the consummation of, the Security sale transaction for various reasons (including but not limited to failure to receive, or delay in receiving, required regulatory approvals and meet customary closing conditions); (xxx) the failure to undertake or complete, or a delay in the timing of, the share repurchase program; and (xxxi) failure to realize the expected benefits of the Company's capital allocation strategy and share repurchase program.

Additional factors that could cause actual results to differ materially from forward-looking statements are set forth in the Annual Report on Form 10-K and in the Quarterly Report on Form 10-Q, including under the heading "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and in the Consolidated Financial Statements and the related Notes.

Forward-looking statements in this press release speak only as of the date hereof, and forward-looking statements in documents attached that are incorporated by reference speak only as of the date of those documents. The Company does not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.

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SOURCE Stanley Black & Decker

FAQ

What is the amount of the accelerated share repurchase program by Stanley Black & Decker?

The accelerated share repurchase program amounts to $2.0 billion.

What is the purpose of Stanley Black & Decker's share repurchase program?

The purpose is to enhance shareholder value through disciplined capital allocation.

How will Stanley Black & Decker fund the initial payment for the share repurchase?

The initial payment will be funded through borrowings under existing credit agreements.

When is the expected completion date for the final settlement of the share repurchase?

The final settlements under the ASR Agreements are expected to be completed in the second quarter of 2022.