TOWSON, Md., Sept. 29 /PRNewswire-FirstCall/ -- The Black & Decker
Corporation (NYSE: BDK) today announced that the antitrust waiting periods
have passed, or it has received clearance from all regulatory agencies, for
the purchase of the Tools Group from Pentair, Inc. (NYSE: PNR). The Tools
Group includes the Porter-Cable, Delta, DeVilbiss Air Power, Oldham Saw, and
FLEX businesses. The purchase price will be approximately $775 million in
cash, and the closing of the transaction is now anticipated to occur in early
October. The Tools Group's sales and operating profit for 2003 were $1.08
billion and $82 million, respectively.
Nolan D. Archibald, Chairman and Chief Executive Officer, commented, "We
are pleased to have received regulatory clearance. By adding the Tools
Group's well-respected brands and products, we expand our offerings where we
have relatively low market share. Further, we are enhancing our distribution
network, particularly in the industrial and construction channel. The
acquisition of Pentair's Tools Group is a great strategic fit with our DEWALT
division and will nearly double our North American professional business."
"From a strategic and financial perspective, this is an ideal bolt-on
acquisition. We will leverage our proven strengths in product innovation,
brand management, strong customer relationships, end-user focus, and cost
reduction to add value to the acquired businesses. We anticipate that we will
realize $65 million of annual cost savings by the end of 2007. The
acquisition should be slightly accretive to earnings per share in 2004, and as
we previously announced, we expect accretion of approximately $0.50 per share
in 2005 and an incremental $0.25 per share in both 2006 and 2007, for a total
annual accretion of $1.00 per share by the end of 2007. The acquisition has a
very positive net present value and should be accretive to our return on
capital employed by 2007."
This release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. By their nature, all forward-looking statements involve
risks and uncertainties. For a more detailed discussion of the risks and
uncertainties that may affect Black & Decker's operating and financial results
and its ability to achieve the financial objectives discussed in this press
release, interested parties should review the "Forward-Looking Statements"
sections in Black & Decker's reports filed with the Securities and Exchange
Commission, including the Annual Report on Form 10-K for the fiscal year ended
December 31, 2003.
Black & Decker is a leading global manufacturer and marketer of power
tools and accessories, hardware and home improvement products, and technology-
based fastening systems.
SOURCE The Black & Decker Corporation
 back to top
Related links:
http://www.bdk.com
Company News On-Call: Black & Decker press releases
available through http://www.prnewswire.com/comp/235329.html
CONTACT:
Barbara B. Lucas, Senior Vice President,
Public Affairs, +1-410-716-2980, or Mark M. Rothleitner, Vice
President, Investor Relations and Treasurer, +1-410-716-3979,
both of The Black & Decker Corporation
|
