Stanley Black & Decker Sells Excel Industries to Bad Boy Mowers
Strategic divestiture in the industrial equipment sector
1Transaction Overview
Stanley Black & Decker has entered into an agreement to sell its Excel Industries subsidiary to Bad Boy Mowers. Excel Industries is a leading manufacturer of commercial and residential lawn care equipment. The deal represents a strategic move for both companies in the outdoor power equipment market. Financial terms of the transaction were not disclosed but are expected to close in the coming months.
2About Excel Industries
Excel Industries manufactures Hustler and BigDog brands of zero-turn mowers and turf equipment. The company has been operating for over 60 years with facilities in Hesston, Kansas. Excel employs approximately 1,000 workers and serves both commercial landscapers and residential customers. The company reported annual revenues of approximately $300 million prior to the acquisition.
3Bad Boy Mowers' Expansion
Bad Boy Mowers is a rapidly growing manufacturer of commercial-grade mowers based in Batesville, Arkansas. The acquisition of Excel Industries will significantly expand Bad Boy's product portfolio and manufacturing capabilities. This marks Bad Boy's largest acquisition to date as it seeks to compete more aggressively in the commercial turf equipment market. The company has doubled its revenue over the past five years.
4Stanley Black & Decker's Strategy
The divestiture aligns with Stanley Black & Decker's ongoing portfolio optimization strategy. The company has been streamlining operations to focus on core industrial tools and security businesses. This follows several other recent divestitures including the sale of its mechanical security business. The transaction will allow Stanley to reduce debt and improve financial flexibility.
5Industry Consolidation Trend
The outdoor power equipment industry has seen significant consolidation in recent years. Major players have been acquiring smaller brands to expand market share and product offerings. This transaction follows similar moves by competitors like Toro and John Deere. The market is valued at over $30 billion globally with steady growth projections.
6Impact on Employees
Both companies have stated their commitment to maintaining Excel Industries' workforce. Bad Boy Mowers plans to retain all current Excel employees and continue operations in Kansas. The acquisition may create additional job opportunities as Bad Boy integrates Excel's product lines. Employee benefits and compensation packages are expected to remain comparable.
7Market Reaction
Industry analysts view the deal positively as beneficial for both parties. Stanley Black & Decker shares rose slightly following the announcement. The acquisition positions Bad Boy Mowers as a stronger competitor against industry leaders. Market experts predict further consolidation in the sector as companies seek economies of scale.
8Future Outlook
The transaction is expected to close by the end of Q3 2023 pending regulatory approvals. Bad Boy Mowers plans significant investments in Excel's product development and distribution. The deal could reshape competitive dynamics in the commercial turf equipment segment. Both companies anticipate synergistic benefits from combined operations and shared technologies.
Original article: All News — Stanley Black & Decker Sells Excel Industries to Bad Boy Mowers