UPDATE 2-Howmet to buy Stanley Black & Decker's aerospace unit for $1.8 billion

Stanley Black & Decker, Inc. +0.15%
Howmet Aerospace Inc. +0.56%

Stanley Black & Decker, Inc.

SWK

72.45

+0.15%

Howmet Aerospace Inc.

HWM

257.56

+0.56%

Adds share movement in paragraph 2, background and details on transaction throughout

Dec 22 (Reuters) - Airplane parts maker Howmet Aerospace HWM.N will buy Consolidated Aerospace Manufacturing from Stanley Black & Decker SWK.N for an all-cash price of about $1.8 billion, the companies said on Monday.

Power tools maker Stanley Black & Decker SWK.N expects to significantly reduce debt from the transaction. Its shares rose 6% in early trading.

The company has been cutting costs as per a three-year program to save $2 billion by the end of 2025.

Its aerospace unit, Consolidated Aerospace Manufacturing, provides fasteners, fittings and other engineered components for aerospace and defense industries. The unit is expected to generate full-year 2025 revenue of approximately $405 million to $415 million.

The transaction, expected to close in the first half of 2026, will receive favorable treatment for federal tax purposes, Howmet said.

Howmet makes jet engine components, aerospace fastening systems and airframe structural components.

Aerospace suppliers like Howmet have been benefiting from production hikes by Boeing BA.N and Airbus AIR.PA, fueled by long order books and resilient air travel demand.


(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Sahal Muhammed and Vijay Kishore)

((Aatreyee.Dasgupta@thomsonreuters.com;))

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