Stanley Black & Decker to Acquire Infastech

Deal pays $850 million for Hong Kong fastener maker.

Stanley Black & Decker Inc. has announced that it will pay $850 million in cash for Infastech, a Hong Kong fastener manufacturer.

Stanley said the purchase will result in annual cost savings of $25 million within three years.

The deal is expected to close in the fourth quarter.

Infastech has annual revenue of about $500 million and more than 2,000 employees. It designs and makes engineered fastening technologies for manufacturers in electronics, autos, aerospace and construction under brands including Avdel and ELCO. More than half its 2011 revenue came from the Asia-Pacific region.

Stanley said Infastech will be combined with its Emhart Teknologies division.

Sources: Reuters, The Wall Street Journal