Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Stanley Black & Decker (SWK - Analyst Report) recently received antitrust clearance from the European Commission for its acquisition of Sweden-based Niscayah.

In the month of June, Stanley proposed to acquire Niscayah for SEK7.6 billion or approximately $1.2 billion, through a tender offer by a wholly-owned subsidiary SBD Holding AB. The transaction is expected to close in September 2011.

Niscayah’s board has advised the shareholders and warrant holders to accept the deal. Further, shareholders of Niscayah owning a 19.5% stake have given their consent to the proposal.

The company currently has 72 million shares or a 19.8% stake in the target company. The offer price of SEK18 per share represents a 15% premium over Niscayah's closing price on June 23, 2011.

Niscayah is a leading commercial security and monitoring company specializing in electronic security services and solutions, with a strong presence in Europe including the Nordic Region, as well as in the United States. Estimated revenue from Niscayah for fiscal 2011 is approximately $1 billion.

The acquisition would enhance Stanley’s existing security product offerings and expand its international footprint.

As a consequence of the merger, management expects annual cost savings of $80 million, and more than half will be realized in the first year after closing. The acquisition will also be accretive to EPS by 20 cents in year one and 45 cents by year three.

Stanley Black & Decker manufactures tools and engineered security solutions across the globe. Prime competitors of the company are Danaher Corp. (DHR - Analyst Report), Makita Corp. , and Snap-on Inc. (SNA - Analyst Report).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ANI PHARMACE ANIP 24.83 +14.85%
BITAUTO HOLD BITA 35.20 +14.40%
E HOUSECHINA EJ 10.98 +9.15%
CANADIAN SOL CSIQ 27.02 +7.34%
KNIGHTSBRIDG VLCCF 12.46 +5.41%