Natural Gas Partners has sold CRC-Evans International to Stanley Black & Decker (NYSE: SWK) for $445 million in cash. Houston-based CRC-Evans provides tools, equipment and services for the construction of oil and natural gas transmission.
Stanley Black & Decker (NYSE: SWK) announced today it has acquired CRC-Evans International (“CRC-Evans”), a leading global supplier of specialized tools, equipment and services for the construction of oil and natural gas transmission pipelines, for $445 million in cash from a group of investors led by private equity firm, Natural Gas Partners.
CRC-Evans represents a significant step in the expansion of the Company’s Infrastructure Solutions strategic growth platform. With fiscal 2010 (3/31) revenues of approximately $250 million, CRC-Evans immediately establishes a scalable, global growth vehicle for Stanley Black & Decker to capitalize on favorable end-market trends in the oil and gas infrastructure area. The acquisition continues the Company’s long-stated goal of diversifying its revenue base by developing its five strategic growth platforms by leveraging its proven ability to drive operational efficiencies, innovation and profitable growth. CRC-Evans is notable for its comprehensive product offerings and proprietary technologies as well as its strong and established management team.
President and CEO, John F. Lundgren, commented, “This is a financially and strategically compelling transaction for Stanley Black & Decker. CRC-Evans is a highly profitable growth-oriented company with outstanding value propositions and strong customer relationships. As we continue our strategy to diversify outside of CDIY and Industrial tools, we see this acquisition as an important step in building our Infrastructure Solutions business through acquisitions. We have been impressed with this business since our initial discussions began over a year ago and are very pleased that CRC-Evans’ experienced and well-respected management team will play a significant ongoing role as we bring to bear the Company’s resources to support its future growth.”
The acquisition of CRC-Evans will be immediately accretive to Stanley Black & Decker’s earnings and will be over $0.10 accretive to earnings by year three. The acquisition will be funded with Stanley Black & Decker’s existing sources of liquidity and will not increase the company’s year-end debt levels.
Founded in 1933, CRC-Evans is a Houston, TX based full-line supplier of specialized tools, equipment and services used in the construction of large diameter oil and natural gas transmission pipelines. The company sells and rents custom pipe handling and joint welding and coating equipment used in the construction of large and small diameter pipelines. CRC-Evans has a strong position in onshore natural gas pipeline equipment and services, which accounts for approximately 80% of revenues. Over 65% of CRC-Evans’ 2009 revenues were international in nature with a strong presence in the emerging markets. Fiscal 2009 was the company’s peak year for revenues ($353 million) and EBITDA ($102 million). More information can be found at www.crc-evans.com.
Founded in 1988, Natural Gas Partners is a Texas based family of private equity funds that is part of the investment platform of NGP Energy Capital Management, an investment franchise in the natural resources sector with over $9 billion in cumulative capital under management.
The Company will host a conference call today, Thursday, July 29th, at 5PM ET, led by CFO and SVP Don Allan. A slide presentation which will accompany the call will be available at www.stanleyblackanddecker.com and will remain available after the call.