Stanley Black & Decker announced Wednesday that it will acquire Consolidated Aerospace Manufacturing (CAM) for up to $1.5 billion, boosting the New Britain, CT-based company’s presence in the aerospace and defense fastener market.

$200 million of the purchase price will be held back and is contingent on the Boeing 737 MAX receiving FAA authorization to return to service and Boeing achieving certain production levels. Adjusting for expected cash tax benefits, the net transaction value is approximately $1.1 billion to $1.3 billion.

Consolidated Aerospace Manufacturing

CAM is a manufacturer of specialty fasteners and components for the aerospace and defense markets with last-12-months revenue of approximately $375 million. CAM will become part of Stanley B&D’s portfolio of engineered fastening and components solutions, with the company saying the acquisition adds “a meaningful platform within the company’s Industrial segment for continued organic and acquisitive growth.”

CAM’s products include fasteners, fittings, couplings, latches, quick release pins, tubing subassemblies and other complex components and assembled products. Based in Brea, CA, the company was founded in 2012, has more than 1,400 employees and has consolidated eight businesses.

“Growing and diversifying our Industrial business through M&A is a key priority for the company and a focus of our strategic capital deployment,” commented James Loree, Stanley B&D president and CEO. “Today we are excited to announce the acquisition of CAM which is an ideal platform asset to scale within our Engineered Fastening business and significantly adds to our exposure in the high growth, high margin aerospace and defense segment. CAM is a quality asset bringing well-recognized brands, a proven business model, an experienced management team and compelling cash flow characteristics which create an attractive pathway for profitable growth and shareholder returns.”

Stanley Black & Decker also announced Wednesday a leadership change for its Tools & Storage business segment, and reported its 2019 fourth quarter and full-year financial results.