Howmet Aerospace Inc. (NYSE: HWM) has announced its definitive agreement to acquire Consolidated Aerospace Manufacturing, LLC (CAM) from Stanley Black & Decker, Inc. (NYSE: SWK) for an all-cash purchase price of approximately $1.8 billion. This acquisition is expected to strengthen Howmet Aerospace's portfolio of high-tech, mission-critical aerospace fastening solutions and deepen its exposure to key aerospace and defense platforms.
CAM is projected to generate FY 2026 revenue of approximately $485 to $495 million, with an adjusted EBITDA margin in excess of 20% before synergies. The combination of synergies and a significant tax benefit for Howmet is anticipated to result in an FY 2026 adjusted EBITDA transaction multiple of approximately 13x.
John C. Plant, the Executive Chairman and Chief Executive Officer of Howmet Aerospace, stated that the acquisition of CAM is a significant step in the company's strategy to build out its differentiated fastener portfolio. He emphasized that CAM's established brands, engineering capabilities, and strong customer relationships are a perfect complement to Howmet's existing business, allowing for better service to aerospace and defense customers with a broader offering of mission-critical fastening solutions.
The transaction is expected to close in the first half of 2026, subject to customary closing conditions and regulatory approvals. J.P. Morgan Securities LLC is serving as the financial advisor to Howmet Aerospace, while Cleary Gottlieb Steen & Hamilton LLP is serving as legal counsel.
Howmet Aerospace Inc. is a leading global provider of advanced engineered solutions for the aerospace and transportation industries. The company's primary businesses focus on jet engine components, aerospace fastening systems, and airframe structural components necessary for mission-critical performance and efficiency in aerospace and defense applications, as well as forged aluminum wheels for commercial transportation. With approximately 1,170 granted and pending patents, the company's differentiated technologies enable lighter, more fuel-efficient aircraft and commercial trucks to operate with a lower carbon footprint. Today the company's shares have moved 2.54% to a price of $203.03. Check out the company's full 8-K submission here.
