Howmet Aerospace Inc. entered into a definitive agreement to acquire Consolidated Aerospace Manufacturing, LLC (CAM) from Stanley Black & Decker for an all‑cash purchase price of approximately $1.8 billion. The transaction is expected to close in the first half of 2026, subject to customary closing conditions and regulatory approvals.
The acquisition is projected to add roughly $485 million to $495 million in FY 2026 revenue, representing about a 5% increase over Howmet’s FY 2025 revenue of $9 billion. Adjusted EBITDA from CAM is expected to exceed 20% before synergies, which would lift the combined entity’s margin profile. The deal is priced at a transaction multiple of roughly 13× FY 2026 adjusted EBITDA when synergies and tax benefits are included, indicating a premium that reflects the strategic value of CAM’s fastener portfolio and customer relationships.
Strategically, the purchase expands Howmet’s differentiated fastener lineup and deepens its presence in aerospace and defense platforms. CAM’s history of high‑margin fastener and fluid‑fitting production, combined with its established brands and engineering expertise, complements Howmet’s core jet‑engine and structural component businesses. The expected synergies include cost savings from shared manufacturing resources, cross‑selling opportunities to existing customers, and accelerated product development through integrated engineering teams.
The $1.8 billion cash outlay will be financed primarily through Howmet’s existing liquidity, with a portion of the funding expected to come from new debt issuance. This approach preserves Howmet’s balance‑sheet strength while allowing the company to maintain its free‑cash‑flow generation. For Stanley Black & Decker, the proceeds will be used to reduce debt, improving its leverage profile and providing greater capital‑allocation flexibility.
John C. Plant, Executive Chairman and CEO of Howmet, said the acquisition “is a major step in our strategy to build out our differentiated fastener portfolio” and that CAM’s attributes are a “perfect complement to our existing business.” He added that the deal represents a “compelling use of capital to drive value for our shareholders.” The transaction is supported by J.P. Morgan Securities LLC as financial advisor and Cleary Gottlieb Steen & Hamilton LLP as legal counsel.
The announcement was met with a positive market reaction, with analysts noting the strategic fit, expected accretion to earnings, and the strengthening of Howmet’s competitive moat in the aerospace and defense fastener market.
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