On June 28, New Britain, Connecticut-based tool manufacturer Stanley Black & Decker announced it has signed a definitive agreement for the sale of its Stanley Oil & Gas business to Pipeline Technique Limited.
The sale encompasses pipeline services and equipment businesses including CRC-Evans Pipeline International, Pipeline Induction Heat Ltd. and Stanley Inspection, which generated combined revenues of approximately $140 million in 2021.
“The sale of our oil and gas business builds on our strategic commitment to streamlining our company to focus on our core Tools & Outdoor and Industrial businesses,” said Don Allan, Stanley Black and Decker’s president & CFO. “The portfolio simplification is designed to leverage our leadership positions to drive innovation, organic growth and margin expansion, as well as generate significant long-term value for our shareholders.”
The news of the sale comes four weeks after Stanley Black & Decker announced that Allan will be appointed CEO on July 1. The company will report its 2022 second-quarter earnings July 28.
Stanley Black & Decker expects to incur a pre-tax, non-cash charge of approximately $125 to $200 million related to the write-down of the Oil & Gas net assets, which will be excluded from adjusted earnings. The results of the Oil & Gas business will remain in continuing operations and will not be reclassified as discontinued operations. The transaction is subject to regulatory approval and other customary closing conditions, the company said.