Epiroc to purchase Stanley Infrastructure

Sweden-based mining and infrastructure products manufacturer Epiroc AB (Epiroc) announced on Friday, December 15, its planned acquisition of hydraulic tool producer Stanley Infrastructure at a cost of Swedish Krona (SEK) 7.8 billion (US$760 million).

According to Epiroc, the acquisition is an all-cash transaction with secured financing through a bridge facility. The acquisition is subject to customary regulatory filings and is expected to complete in the first quarter of 2024.

Stanley Infrastructure was founded in 2011 and is a subsidiary of the US-based Stanley Black & Decker. The business has ten key production facilities, in the US, Canada, France, and China.

The company is a global manufacturer of industrial tools and household hardware, including excavator attachments and handheld hydraulic and battery-operated tools.

Stanley Infrastructure focuses on producing machinery and products across several sectors including construction, demolition, electric and water utilities, recycling, underwater services, search and rescue, and rail/communications.

A LaBounty brand Stanley Infrastructure mobile shear attachment for scrap recycling.

Popular Stanely Infrastructure brands include LaBounty, Pengo, Paladin, Dubois and Intaca.

Epiroc will inherit roughly 1300 employees from Stanley as well as a revenue system that relies heavily (roughly 90%) on North American sales.

Helena Hedblom, Epiroc president and CEO, said via press release and news conference on December 15 that, she believes, the acquisition will bolster Epiroc’s existing portfolio while also helping the publicly traded Swedish company enter the North American and US markets.

“We see a great opportunity in sales synergies,” said Hedblom at a press conference following the announcement. “It has strong exposure to North America. It further extends the reach of Epiroc’s innovation and enables cross-selling and leveraging of brands and channels for both companies.”

She referred to a “broad product range” that “meets diverse customer demand” in explaining why Epiroc valued Stanely Infrastructure. Hedblom also noted that the company viewed Stanley Infrastructure’s existing brands as having “leading market positions.”

Hedblom said Stanley Infrastructure was expecting 2023 revenues in the range of SEK 4.6-4.8 billion (approximately US$450 million). Epiroc’s finance team estimated the acquisition will increase the company’s net debt/EBITDA ratio from 0.49 to just less than 1.

Hedblom said she believes the purchase will help synergise global sales, and “would be a complimentary footprint to serve the North American market” as opposed to an alternative to its existing product offerings.