Stanley Black & Decker completed the sale of its Consolidated Aerospace Manufacturing (CAM) business to Howmet Aerospace on April 6 2026, receiving approximately $1.8 billion in cash. After taxes and fees, the company will record net proceeds of about $1.57 billion, which it intends to use to pay down debt and strengthen its balance sheet.
The divestiture is part of Stanley Black & Decker’s broader strategy to sharpen its focus on the Tools & Outdoor and Engineered Fastening segments. By shedding CAM, the company expects to bring its net debt to adjusted EBITDA leverage ratio to around 2.5 times by year‑end 2026, a target that aligns with its long‑term capital structure goals and supports future capital allocation opportunities.
CAM was originally acquired in Q1 2020 for up to $1.5 billion. Howmet Aerospace anticipates that the acquired business will generate FY 2026 revenue of $485–$495 million with an adjusted EBITDA margin exceeding 20%. The sale therefore represents a profitable exit for Stanley Black & Decker and a strategic fit for Howmet, which seeks to expand its high‑tech aerospace fastening portfolio.
Stanley Black & Decker’s 2025 adjusted earnings per share were $4.67, with net sales of $15.1 billion. For 2026, the company forecasts adjusted EPS in the range of $4.90 to $5.70 and expects free cash flow of up to $900 million, including the proceeds from the CAM sale. The transaction is expected to accelerate debt reduction and improve financial flexibility, positioning the company for continued growth in its core businesses.
"The successful sale of CAM further focuses our portfolio on our core businesses. The proceeds from this transaction are expected to significantly reduce our debt, positioning us to achieve our target leverage ratio of at or around 2.5 times net debt to adjusted EBITDA by year end, and enabling additional capital allocation opportunities," said Chris Nelson, President & CEO. "We remain committed to disciplined capital allocation and accelerating value creation for our shareholders." Nelson also praised the CAM team for their dedication and contributions, noting that they will continue to drive meaningful impact at Howmet.
Analysts view the debt‑reduction benefit of the sale positively, seeing it as a step toward a more balanced capital structure and enhanced shareholder value. The transaction is expected to support Stanley Black & Decker’s ongoing transformation and simplification efforts, which have included the divestiture of other legacy businesses such as the infrastructure and automatic door units.
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