(MENAFN) Stanley Black & Decker Inc. announced that it is selling its hardware and home improvement unit to Madison, Wis.-based Spectrum Brands Holdings Inc. in a USD1.4 billion deal, reported AP.
The New Britain, Conn.-based firm said that the agreement also comprises several assets of Taiwan's Tong Lung Metal Industry Co., which manufactures residential and commercial locksets.
It said that the deal is not expected to change its change its financial forecast for 2012; nevertheless, it forecasts the agreement to result in USD1.3 billion in proceeds after taxes.
The company plans to use the bulk of the proceeds to purchase back shares and a smaller portion to reduce debt, whereas the remaining proceeds, along with offshore capital, will be used to pay for the firm's previously announced purchase of Infastech.
On the other hand, Spectrum stated that the acquisition will expand its product offerings which include the Rayovac, Remington and Toastmaster brands.
It is worth noting that the home improvement business, which makes locksets, hardware and faucets for residential use and includes brands like Pfister, Baldwin and Kwikset, should add USD0.75 to USD0.80 per share in Spectrum's fiscal 2013 and over USD1 per share in fiscal 2014, excluding one-time transaction and integration costs.