Acquisition of Newell Tools Presentation
10Pages

Newell Tools PRDTD BOSTITCH MAL Powers "vrdmaf LISTA. ^TAtoEY

Cautionary Statements Stanley Black & Decker makes forward-looking statements in this presentation which represent its expectations or beliefs about future events and financial performance. Forward-looking statements are identifiable by words such as "believe," "anticipate," "expect," "intend," "plan," "will," "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Forward looking statements made in this presentation, include, but are not limited to,...

Executive Summary Stanley Black & Decker To Acquire Newell Tools, A Highly Strategic & Synergistic Transaction… • Adds World Class Brands Irwin® & Lenox® To Stanley Black & Decker’s Stellar Brand Portfolio • Significantly Increases Power Tool Accessories Business And Expands Footprint In Plumbing & Electrical Trades • Highly Synergistic Transaction With Identified Annual Cost Synergies Of ~$80 - $90M By Year Three And Strong Revenue Synergy Potential • Purchase Price Of $1.95B In Cash | LTM Revenue Of ~$760M | LTM EBITDA ~$150M …That Aligns With Our Strategic Growt

Acquisitive Growth / Financial Framework Active Pipeline For Potential Acquisition Targets... Acquisition Criteria: • Organizational Capacity • Financial Evaluation » 15% + OM | Organic Growth Consistent With Company Targets » Accretive Year 1 Excluding Charges » Achieves CFROI Targets » Value Creation Opportunity > Share Repurchase • One-Time Charges Associated With Acquisitions Will Likely Exceed ~$50M Annual Restructuring Expectation • ~ 50% Of Free Cash Flow Will Be Deployed Toward Acquisitions - Expect A Moderate Pace Going Forward Acquisitive Growth Areas Tool Industry Engineered...

Newell Tools: Overview Company Overview Product & Regional Sales Mix Other HTs 7% • ~$760M Manufacturer Of Hand Tools & Power Tool Accessories • Global Footprint With Majority Of Sales In North America • Diverse & Complementary Product Line • Strong Presence In Electrical & Plumbing Trades Cutting / Circ Saw 12% Primary Brands Highly Attractive Asset – Strong Brands, Complementary Products, New Cha

Newell Tools: Brand Summary & Sample Products *Represents Percent Of Consolidated Revenue

Acquisition Summary Transaction Details Strategic Rationale Financial Information Deal Structure & Purchase Price • Expand Leadership Position In Global Tools & Storage Industry | Leverage Industry Expertise To Drive Cost & Revenue Synergy Opportunities • 100% Acquisition | Mix Of Stock And Asset Purchase • Strong Global Brand Presences: Irwin® & Lenox® • $1.95B Cash Purchase Price • Complementary Product Lines With Emphasis In Hand Tools & Power Tool Accessories Newell Tools Overview Acquisition Related Charges • ~$125 - $140M Restructuring And Other 1-Time Charges, Primarily Incurred In...

Synergy Overview Significant Annual Cost Synergies Identified Of ~$80 - $90M… Identified Annual Cost Synergies Functional Efficiencies  Optimizing Teams, Systems & Discretionary Spend  Annual Synergies: ~$50 - $60M Potential Revenue Opportunities Geographic Expansion Industrial Channel  Expand Product Distribution Points Footprint Consolidation & Overhead Reductions  Rationalizing Manufacturing & Distribution Logistics  Leverage Irwin®| Lenox® Mobile Conversion Program Retail Channel  Partner Programs & Portfolio Management  MiUSA Expansion Other Operation Synergies Brand & Product...

Enhances Existing Strong Brand Portfolio With Addition Of Irwin® & Lenox® Brands Increases Global Cross-Branding Opportunities For Tools & Storage Business Acquisition Consistent With Longstanding Growth Framework To Enhance Leadership Position Within Tools Industry EPS Accretion, Ex-Charges, Of ~$0.15 Per Share Expected In Year One And ~$0.50 Per Share In Year Three