Howmet Aerospace Inc. (NYSE:HWM) has reached an agreement to buy Consolidated Aerospace Manufacturing, LLC, a supplier of precision fasteners and fittings used across aerospace and defense programs.
The $1.8 billion all-cash deal will transfer the business from Stanley Black & Decker, Inc. (NYSE:SWK), enabling Howmet to focus even more on high-performance, mission-critical components.
The transaction is expected to deliver favorable federal tax treatment, boosting the deal’s overall financial appeal. Company leadership states that the acquisition aligns perfectly with Howmet’s strategy to expand its presence in the aircraft and defense supply chains by introducing specialized manufacturing capabilities.
Financial Impact And Valuation
Howmet expects the acquired business to produce $485 million to $495 million in revenue during fiscal 2026. Adjusted EBITDA margins are projected to exceed 20% before synergies. Including integration benefits and tax advantages, the transaction values the business at roughly 13 times adjusted EBITDA.
John C. Plant, CEO of Howmet Aerospace, said, “The acquisition of CAM is a major step in our strategy to build out our differentiated fastener portfolio.”
He added that the deal strengthens Howmet’s offerings through well-known brands, deep engineering capabilities, and durable customer relationships, positioning the company to better meet the rising performance requirements of aerospace manufacturers and defense contractors.
Stanley Black & Decker Context
The divestiture comes as Stanley Black & Decker continues to manage cost pressures and ongoing trade headwinds. A recent earnings analysis highlighted persistent tariff challenges that have influenced the company’s strategic decisions and outlook.
Stanley Black & Decker CEO Chris Nelson said the sale of CAM underscores the company’s focus on sharpening its core businesses and boosting shareholder value.
He noted that proceeds from the divestiture will be used to materially reduce debt, helping the company reach its target leverage of 2.5 times net debt to adjusted EBITDA and restoring balance-sheet flexibility for future capital allocation.
Nelson added that CAM is well-positioned to succeed under Howmet Aerospace and thanked CAM employees for their contributions to the business’s growth and performance.
As of September 30, 2025, Howmet reported cash and cash equivalents of $659 million. The companies expect to close the transaction in the first half of 2026, subject to regulatory approvals.
Price Action: HWM shares were up 1.53% at $206.59 at the time of publication on Monday. The stock is approaching its 52-week high of $211.95, according to Benzinga Pro data. SWK was up 4.84%.
Read Next:
Photo by T. Schneider via Shutterstock
