Stanley Black & Decker (SWK) has recently acquired 37 million shares or a roughly 10.2% stake in Sweden-based Niscayah for a price not exceeding SEK18, implying $2.77 per share.
Niscayah is a leading commercial security and monitoring company specializing in electronic security services and solutions and is gaining a foothold across Europe and the Nordic Region, as well as in the United States.
Stanley has complied with the U.S. antitrust conditions related to the offer and the compulsory antitrust waiting period for the proposed acquisition of Niscayah had expired.
In the month of June, Stanley proposed to acquire Niscayah for SEK7.6 billion or approximately $1.2 billion. The transaction is expected to close in September 2011.
The offer price of SEK18 per share represents a 15% premium to Niscayah’s closing price on June 23, 2011. This offer price also exceeded a previous all-stock offer made by Securitas AB in May to acquire Niscayah.
Through Niscayah, Stanley expects to enhance its existing security product offerings and also expand its footprint in the international market.
The merger is expected to save $80 million annually, more than half of which would be realized by the end of year one after closing. Moreover, the acquisition will be EPS-accretive by 20 cents in year one and 45 cents by year three.
The target company’s board has recommended the deal to the shareholders and warrant holders. Further, shareholders owning a 19.5% stake in Niscayah have consented to the offer.
Stanley Black & Decker manufactures tools and engineered security solutions across the globe. Prime competitors of the company are Danaher Corp. (DHR), Makita Corp. (MKTAY) and Snap-on Inc. (SNA).
