Supplier update
SBD acquires Nelson Fastener Systems
Stanley Black & Decker acquires an industrial fastener maker from Doncasters
Stanley Black & Decker acquires an industrial fastener maker from Doncasters
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Energizer buys Spectrum Brands' batteries unit and Ground Logic spreaders part of Briggs & Stratton
HNN Sources
Industrial fastener maker, Nelson Fastener Systems has been acquired by Stanley Black & Decker; Spectrum Brands will sell its batteries businesses to Energizer; Briggs & Stratton has expanded its line of standby generators; and Sika beats sales forecasts and expects faster growth in 2018.
UK industrial fastener maker sold to SBD

Stanley Black & Decker has reached an agreement to purchase Nelson Fastener Systems, a manufacturer of fasteners and studs, from UK-based Doncasters Group for approximately USD440 million in cash. The acquisition does not include Nelson's automotive stud welding business.

Founded in 2016, Nelson is a global distributor of fasteners and fastening systems. It manufactures industrial products made from a variety of materials, including carbon steels, stainless steel, alloys and more. The Californian company operates as a subsidiary of Doncasters serving the aerospace, automotive, construction, energy, industrial, marine and military markets.

The acquisition is expected to enhance Stanley Black & Decker's engineered fastening presence in the industrial market. The transaction is expected to close in the first quarter of 2018.

Doncasters' divestiture of Nelson comes as the company plans to focus on its core specialised markets: aerospace, industrial gas turbine and specialty automotive. The sale will assist Doncasters in paying down "some existing debt as well as provide necessary capital to further invest in these markets and accelerate growth".

Stanley Black & Decker recently sold its door and mechanical security business to Dormakaba, and purchased the tool business from Newell Brands for approximately USD1.95 billion in cash to expand in industrial cutting equipment.
Spectrum Brands sells batteries, lighting

Diversified consumer products company, Spectrum Brands said it has reached an agreement to sell its batteries and lighting businesses to competitor Energizer for USD2 billion in cash.

Executive chairman David Maura said in a statement that selling the businesses will allow Spectrum Brands to lower debt, buy back shares and make some acquisitions.
[It] is a culmination of our efforts to sell the battery business in order to refocus Spectrum Brands and enhance shareholder value. While we have a long and proud heritage in the battery business, this is a key part of our re-allocation of capital strategy towards a faster-growing and higher-margin Spectrum Brands.

Spectrum makes Rayovac batteries and George Foreman grills, among many products, and said it wants to concentrate on its four remaining businesses: hardware and home improvement, auto care, pet supplies, and home and garden equipment.

The batteries and appliances businesses, which include Rayovac batteries and Black & Decker home appliances, accounted for about 40% of Spectrum's sales in fiscal year 2017.

For Energizer, the deal grows its batteries division, while also expanding its international business.

In 2017, Spectrum added to its headquarters in Middleton, Wisconsin (USA) to accommodate expected growth.
Sika implements growth strategy

Construction chemicals maker, Sika said it has beaten both its annual sales target and market expectations in 2017, and is forecasting stronger growth in 2018.

The company, which has been involved in a takeover battle with France-based Saint-Gobain for three years, reported annual sales of 6.25 billion Swiss francs (USD6.39 billion) for 2017 - exceeding its target of 6 billion francs.

The 8.9% increase in local currencies narrowly beat the average estimate of 6.2 billion francs in a Reuters poll, and was marked by a growth rate of 12% during its fourth quarter as a number of acquisitions kicked in.

Read more about the specific acquisitions across its regions here:
Sika sales exceed 6 billion francs for the first time - Globe Newswire

Under new CEO Paul Schuler, the company is even more bullish about 2018, saying it expects sales growth of more than 10% and a higher growth rate for operating profit. The improvements reflected Sika's investments during 2017, Mr Schuler said. He has already indicated the company will ramp up its buying spree.
With nine new factories, three further national subsidiaries, and seven company takeovers, we have made significant investment in growth markets as well as in growth platforms in the form of product technologies and distribution channels.
These 19 strategic investments, our pipeline with innovative quality products and our global presence - we now have 100 national subsidiaries and more than 200 factories - allow us to look toward the future with optimism.

Sika said it expected a bigger increase in its 2017 profits, anticipating beating its previous highest net profit of 567 million francs it made in 2016. It said it expected an operating profit of 880 to 900 million francs for 2017. The company is due to report its earnings in late February.

The Swiss company's takeover fight with Saint-Gobain was sparked by its founding family wanting to sell its controlling stake to the French group. The next court decision -- centring on the family's voting rights -- is expected in the next few months.

Saint-Gobain bids for control of Sika - HNN
Briggs & Stratton buys Ground Logic assets

Outdoor power equipment supplier, Briggs & Stratton has expanded its line of standby generators by acquiring a designer and manufacturer of fertiliser and pesticide spreaders.

Ground Logic makes commercial spreaders and sprayers for applying fertilisers, pesticides and herbicides. The products are designed for use on mid- to large-size residential and commercial properties.

The company's spreaders are known as stand-on spreaders, in which workers stand or ride the machines as they operate them. The acquisition will allow Briggs & Stratton to complete its turf product line. With six spreader types, Ground Logic has a larger product line than many of its competitors.

Briggs & Stratton said in a statement that it financed the acquisition using cash on hand. The company does not expect the deal to have a significant impact on its 2018 profit or cash flows.

In October 2017, it reported USD329 million in sales in its first quarter of fiscal 2018, up 14.7% from the same period last year. It also reported $1.8 billion in fiscal 2017 revenue.
HNN Sources

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