Black & Decker Cashes Out Aerospace To Cut Debt

Stanley Black & Decker began the week with a transaction that gave its broader reset a little more credibility. The company completed the sale of its Consolidated Aerospace Manufacturing business (CAM) to Howmet Aerospace for approximately $1.8 billion in cash, with expected net proceeds of about $1.57 billion after taxes and fees. Stanley Black & Decker said those proceeds are expected to go toward reducing debt, which gives the announcement a lot more substance than a routine portfolio shuffle.

The sale does more than raise cash — it sharpens the outline of the company Black & Decker is trying to become. The company said the transaction further focuses the portfolio on its core businesses, while President and CEO Chris Nelson said the proceeds are expected to significantly reduce debt, help position Stanley Black & Decker to reach a leverage ratio of around 2.5 times net debt to adjusted EBITDA by year end, and open up additional capital allocation opportunities. The sale gives management a solid way to back up its push for a tighter portfolio and a healthier capital structure.

That case holds up even better when viewed against the scale of the business Stanley Black & Decker sold. CAM was not just an abstract aerospace holding, but a supplier of critical fasteners, fittings, and other engineered components for the aerospace and defense industries. When the company announced the deal in December, it said CAM was expected to generate about $405 million to $415 million of fiscal 2025 revenue, with an adjusted EBITDA margin approaching the high teens. So this was a meaningful asset sale, not a few spare parts swept off the workbench. The company now gets to trade one industrial business for added financial flexibility and a balance sheet that should look easier to defend.

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