Stanley Black & Decker has entered into an agreement to sell most of its commercial mechanical security business, according to the company.
Swiss company Dormakaba will purchase Stanley’s commercial mechanical security brands Best Access, phi Precision and GMT for $725 million in cash. The companies expect to finalize the deal early in 2017.
Stanley will retain the Sargent and Greenleaf brands, which are part of the mechanical security side of the business. The company will also keep its commercial electronic security and automatic doors businesses.
“While Best Access, phi Precision and GMT are healthy and profitable businesses, they are a better fit in Dormakaba’s portfolio, and their divestiture will allow us to deploy capital in a more accretive and growth-oriented manner,” says Stanley president and CEO James M. Loree.
Stanley currently offers design, installation, servicing and monitoring of security solutions, such as video surveillance, biometric identity management, intrusion protection and fire detection.
Going forward, Stanley will focus its commercial security business on systems that use more advanced analytics, cloud solutions and new technologies, Loree says.
“Our scale and global footprint in this business is an excellent platform to build upon, both organically and inorganically,” he says.
The company also intends to seek innovation opportunities for its automatic doors business, he says.
Earlier this year, Stanley announced its $1.95 billion purchase of Newell Brands’ tool business, which includes the Irwin and Lenox brands of industrial cutting, hand tool and power tool accessories. Like the mechanical security business sale, the Newell deal is expected to close during the first quarter of 2017.