Monday, July 21, 2008

Stanley Works finalizes RFID and home security acquisitions

By Mass High Tech Staff

Power tool and construction supply maker The Stanley Works has completed two acquisitions totalling $324 million in purchases.

Through a $276 million cash buyout, it acquired home security provider Sonitrol Corp., which is owned jointly by Carlyle Venture Partners, Wachovia Capital Partners and Spire Capital Partners. Berwyn, Penn.-based Sonitrol has a national multi-channel network and two monitoring centers for North American security monitoring and fire detection systems.

The Stanley Works (NYSE:SWK) bought its second acquisition, Canadian radio frequency identification (RFID) technology maker Xmark Corp., a wholly-owned subsidiary of Florida-based VeriChip Corp., for $48 million. Under terms of the deal, Xmark will operate as part of Stanley Works’ security segment, which develops physical security systems for buildings, airports and institutions.

Xmark’s products focus on three vertical markets: infant security under the Halo brand, wander protection systems for children under the Hugs brand, and hospital and asset tracking systems under the RoamAlert brand.

The second deal is expected to help Stanley Works’ security business provide a wider array of value-added products and services, according to Stanley Works chairman and CEO John Lundgren.

New Britain, Conn.-based Stanley Works reported revenue of more than $4.7 billion in 2007 and is home to more than 20,000 employees. The company’s security division includes products under the Stanley, Best, National, HSM and FatMax brands.