Howmet Seals $1.8 Billion Deal to Acquire Stanley Black & Decker’s Aerospace Division 

Howmet Aerospace, based in Pittsburgh, Pennsylvania, has earned its reputation as a world-class leader in the development

In a significant transaction that is likely to alter the future contours of the global aerospace supply chain, Howmet Aerospace Inc. has announced that it intends to acquire the Consolidated Aerospace Manufacturing (CAM) business of Stanley Black & Decker for a consideration of approximately $1.8 billion in cash. This acquisition, which was announced on 22nd December 2025, reflects the changing strategies of the two acquisition-happy companies, which are trying to reshape their future strategies. 

The acquisition, expected to be completed in the first half of 2026, subject to approvals and usual closing conditions, represents an immense expansion of Howmet’s portfolio in engineered solutions, with reinforcement in critical sectors in aerospace and defence. 

Howmet Aerospace, based in Pittsburgh, Pennsylvania, has earned its reputation as a world-class leader in the development and delivery of sophisticated engineered products, including jet engine hardware, airframe fastening systems, as well as structural components that play mission-critical roles in both commercial and military aircraft. This acquisition incorporates Consolidated Precision Products’ precision fasters, fluid fittings, and specialty components into Howmet’s already diverse portfolio of products. 

As reported by the official announcement issued by Howmet, the expected revenue from CAM during FY 2026 is estimated to be between $485 million and $495 million, and this is achievable with an adjusted EBITDA margin of over 20% prior to synergies. Strong business performance and synergy gains, coupled with the expected tax treatment, drive the dynamics behind the 13-times transaction multiple attributed to the purchase price. 

John C. Plant, Executive Chairman and Chief Executive Officer of Howmet, described the deal as a “major step” in enhancing its differentiated fastener portfolio, adding that the engineering expertise and long-standing customer relationships of CAM complement Howmet’s mission to deliver high-performance solutions for aerospace manufacturers. 

For Stanley Black & Decker, known for their various global brands that include tools, the outdoors, and engineered fasteners, the spin-off serves as part of their strategy that aims to simplify their business for increased shareholder value. According to Chris Nelson, President & CEO, this decision reflects their emphasis on leveraging their market leadership in growth initiatives, along with their aim to improve their balance sheet. 

The CAM unit alone, which generated approximately $405 million to $415 million in revenue in 2025 with healthy margins, was bought with the intention of diversifying Stanley Black & Decker’s industrial portfolio. The sale frees up considerable liquidity that the company aims to utilize in reducing debt and pursuing higher-value initiatives within its core segments, including its Tools & Outdoor and Engineered Fastening divisions. 

Crucially, this is also seen to have an improving effect on financial flexibility and will aid Stanley Black & Decker to achieve their desired leverage ratio. Nelson further stated that CAM’s skilled employee base is also poised to flourish under Howmet’s leadership and appreciate their efforts towards achieving successes in this division. 

This announcement has received favourable comments from investors as well as market analysts. There are reports that the stock of Howmet has received an uptick in momentum due to the announcement, with estimates that the acquisition will add more than 3% to its first full year’s earnings per share. 

As both companies gear up for the closing of the transaction in upcoming months, attention will shift to integration planning, regulatory reviews, and realization of projected synergies. With aerospace markets forecasted to expand in the medium term, Howmet’s enhanced capability could position it as a key beneficiary of rising demand for advanced engineered products. 

In the end, this particular acquisition of worth $1.8 billion signifies not only the transfer of resources; it is also the symbol of a shift in focus by not one but two major participants in the domain of aerospace.