Jan 30, 2020

Black & Decker agrees to buy major Boeing supplier for $1.5 billion

Illustration: Aïda Amer/Axios

Stanley Black & Decker agreed to buy Consolidated Aerospace Manufacturing, a Fullerton, California-based aerospace parts maker, from private equity firm Tinicum for upwards of $1.5 billion.

Why it matters: CAM is a major supplier to Boeing, and around $200 million of the purchase price is contingent on the FAA authorizing the 737 MAX to return to service.

  • That's a pretty unusual sort of deal caveat, particularly given that CAM has no role on either side of the FAA's decision, and highlights how the MAX situation has negative impacts down the supply chain.

The bottom line: "Stanley Black & Decker has spent more than $10 billion on acquisitions in the last two decades, including the tools business of Newell Brands and the Craftsman brand of Sears... However, bulking up on tools has increased the company’s exposure to big-box retailers such as Home Depot and Lowe’s, which limits its bargaining power. The CAM deal would help it boost its engineered fastening and infrastructure business., writes Reuters' Joshua Franklin.

Go deeper: Boeing lost money in 2019 for the first time in 20 years

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Boeing gets a bailout, but economy still faces trouble

Data: Investing.com; Chart: Axios Visuals

Boeing secured commitments of over $12 billion in financing from more than a dozen banks, CNBC reported Monday, citing unnamed sources.

Why it matters: The bailout will help Boeing maintain a healthier cash position as it deals with the fallout from a mandatory production stoppage of its 737 MAX jet after two crashes that killed hundreds of people.

Go deeperArrowJan 28, 2020

CNBC: Boeing to take $10 billion loan to cover 737 MAX fallout

Workers walking into a 737 factory on Dec. 16. Photo: Stephen Brashear/Getty Images

Boeing is in talks to borrow $10 billion or more, as the company copes with rising compensation claims from two fatal 737 Max crashes in the last two years, CNBC reports.

Why it matters: Analysts believe Boeing's expenditures could amount to more than $15 billion in the first half of 2020, according to the Wall Street Journal.

Go deeperArrowJan 20, 2020

Justice is elusive for Boeing's 346 plane crash victims

Illustration: Aïda Amer/Axios

Boeing is navigating how to handle the $100 million compensation fund it set up for the families of crash victims, even as a pledge by its former CEO to fatten the fund seems uncertain.

Why it matters: Boeing is pulling out all stops to appease Wall Street over the grounding of its 737 MAX, but it is saying little about the issue of restitution for the families of the hundreds who died due to faulty technology onboard its flagship plane.