Stanley Black & Decker has agreed to acquire Consolidated Aerospace Manufacturing LLC (CAM) for as much as $1.5 billion cash.

The deal is contingent on the Boeing 737 MAX returning to service and on Boeing meeting certain production goals.

“Being part of such a capable industrial company will enable us to further expand our company’s resources globally, including accelerating the development of new products and pursuing acquisitions, allowing us to better serve the needs of our customers,” stated CAM CEO Peter George.

George added that in recent years CAM has “invested heavily in upgrading the equipment and facilities of the businesses we integrated, in addition to strengthening our engineering and management resources.”

Stanley Black & Decker CEO James Loree called CAM “an ideal platform asset to scale within our Engineered Fastening business and significantly adds to our exposure in the high growth, high margin aerospace and defense segment.”

Brea, CA-based CAM, which manufactures aerospace fasteners, fittings, couplings, latches, quick release pins, tubing subassemblies and other components and assembled products, was launched by Tinicum in 2012 as a holding company for eight manufacturing firms active in aerospace component sector. Among CAM’s holdings are Bristol Industries, E.A. Patten, Aerofit, Voss Industries, 3V Fasteners, QRP and Moeller. Web: camaerospace.com

CAM will become part of Stanley Black & Decker’s portfolio of engineered fastening & component solutions, adding a platform within the company’s Industrial segment for growth.

The acquisition announcement came as Stanley Black & Decker reported Engineered Fastening organic revenues leveled off during the fourth quarter of 2019 “as higher systems shipments and fastener penetration gains were offset by inventory reductions and lower production levels within industrial and automotive customers.” Segment sales dropped 4% in the previous quarter.

Q4 Industrial segment revenues, including fasteners, increased 9% to $597 million as acquisitions (+13%) were partially offset by lower volume (-4%). Segment profit rate was 13.6%, up from 13.2%, as productivity gains and cost control more than offset the impact from lower volume and externally driven cost inflation. Profit climbed 18.8% to $77.7 million during the period.

Full-year Industrial segment sales grew 11.3 % to $2.4 billion, while profit gained 4.5% to $334.1 million.

Consolidated Stanley Black & Decker revenues improved 3.3% to $14.4 billion in 2019, while operating margin rose to 12.2% and net income climbed 58% to $958 million.

Stanley Black & Decker has spent more than $10 billion on acquisitions in the last two decades. In 2018, Stanley Black & Decker completed its $440 million acquisition of Nelson Fastener Systems. Elyria, OH-based Nelson Fastener manufactures fasteners for the aerospace, automotive, construction, energy, industrial and military markets. Web: StanleyBlackandDecker.com