Stanley Black & Decker will return to a non-executive Chairman of Board effective Oct. 1.
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The U.S. Justice Department filed a civil complaint against SB&D, alleging the toolmaker failed to promptly report safety hazards tied to certain DeWALT utility bars and miter saws. The case seeks civil penalties and injunctive relief.
Proceeds will be used to reduce debt and increase financial flexibility.
It follows the toolmaker having a new CEO at the start of October.
Stanley Black & Decker reported a modest year-over-year sales decline in 2Q, impacted by a slow outdoor season and tariff-related shipment disruptions.
Stanley B&D announced a leadership transition, with a new President and CEO set to take over as Donald Allan steps into the role of Executive Chair.
Stanley Black & Decker implemented a high-single digit price increase on U.S. tools in April, with plans to introduce a second price increase effective the beginning of the third quarter.
The company said it expects EBITDA to expand in 2025 as it pursues a return to historical gross margin of about 35%.
The company said it is preparing to adjust pricing and supply chains to mitigate the impact of Trump administration tariffs.
The company's overall sales decrease was attributed to SBD's Infrastructure divestment earlier this year, and lower consumer demand.
Q2 growth driven by DEWALT, Outdoor Products and Engineered Fastening was offset by SBD's divested Infrastructure segment earlier this year.
Growth in DEWALT and Engineered Fastening was more than offset by lower infrastructure volume and "muted consumer and DIY demand."
SBD's Tools & Outdoor segment drove the overall margin improvement, as Industrial dipped slightly.
Epiroc AB is set to acquire Stanley Black & Decker's attachment and handheld hydraulic tools business, Stanley Infrastructure.
Year-over-year sales declines continued at the toolmaker, but gross margin and operating margins improved substantially.
The industrial tools manufacturer also announced a new leader for its Tools & Outdoor segment.
Changes also will include U.S. site expansions, site transformations into manufacturing centers of excellence and site consolidation.
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The toolmaker reported full-year 2022 revenues of $16.9 Billion, an 11% increase over the prior-year total.
Patrick Hallinan has been appointed to Executive Vice President & Chief Financial Officer, effective April 6.
