Stanley Black & Decker (NYSE: SWK) has reached an agreement to purchase Nelson Fastener Systems, a manufacturer of fasteners and studs, from Doncasters Group for approximately $440 million in cash. The acquisition does not include Nelson’s automotive stud welding business, according to the seller.

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

Doncasters’ divestiture of Nelson comes as the seller intends to focus on its core specialized 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.” The transaction, initially agreed upon in December 2017, is expected to close in the first quarter of 2018.

Stanley Black & Decker, based in New Britain, Connecticut, is a provider of tools and storage, security, and industrial products. The buyer manufactures a vast range of mechanical and general industrial products. Nelson is intended to deliver cost synergies and expand Stanley Black & Decker’s portfolio of fastening tools.

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