Howmet Aerospace will buy aircraft fastener maker Consolidated Aerospace Manufacturing from Stanley Black & Decker for an all-cash price of about $1.8 billion, the companies said on Monday.
The transaction comes a month after two similar aircraft fastener maker deals, as aerospace suppliers have been benefiting from production hikes by Boeing and Airbus, fueled by long order books and resilient air travel demand.
“Aero fastener transactions have been robust of late, as CAM follows other private equity-backed fastener transactions,” TD Cowen analyst Gautam Khanna said.
TriMas Corp announced the sale of its aerospace segment to Tinicum for $1.45 billion, while KKRis selling aerospace and defense hardware maker Novaria Group to Arcline Investment Management for $2.2 billion.
Power tools maker Stanley Black & Decker expects to significantly reduce debt from the transaction. Its shares rose 6% in early trading, while Howmet’s shares are up 1.5%.
Stanley Black & Decker has been cutting costs as per a three-year program to save $2 billion by the end of 2025.
The company had acquired Boeing supplier Consolidated Aerospace Manufacturing in 2020 for $1.5 billion.
CAM manufactures fasteners, fittings and other engineered components for the aerospace and defense industries. The unit is expected to generate full-year 2025 revenue of approximately $405 million to $415 million.
Its acquisition, expected to close in the first half of 2026, will receive favorable treatment for federal tax purposes, Howmet said.
Howmet makes jet engine components, aerospace fastening systems and airframe structural components.
“The deal is a strategic fit to HWM’s much larger ($1.7 to $1.8 billion annual sales) aero fastener business, and should confer sizable cost synergies,” Khanna said.
Source: Reuters.com