Howmet Aerospace Acquisition Strengthens Fastener Portfolio

Howmet Aerospace Inc. (NYSE: HWM) agreed to acquire Consolidated Aerospace Manufacturing (CAM), announced Dec. 22, 2025, deepening its fastener franchise, gaining federal tax benefits, and positioning the company for greater exposure to key aerospace platforms. The transaction is expected to close in the first half of 2026.

Deal Terms and Strategic Rationale

Howmet Aerospace and Stanley Black & Decker Inc. (NYSE: SWK) announced a definitive agreement on Dec. 22, 2025, under which Howmet will acquire CAM for about $1.8 billion in cash. CAM designs and manufactures precision fasteners, fluid fittings, and complex engineered products for aerospace and defense. The deal requires customary closing conditions and regulatory approvals.

Howmet retained J.P. Morgan Securities LLC as financial adviser and Cleary Gottlieb Steen & Hamilton LLP as legal counsel.

The acquisition strengthens Howmet’s high-tech fastener portfolio and increases its exposure to key aerospace platforms. The company said favorable federal tax treatment will produce a significant tax benefit. Howmet projected CAM’s fiscal 2026 revenue at about $485 million to $495 million, with adjusted EBITDA margins above 20% before synergies. After synergies and tax benefits, the transaction implies an adjusted EBITDA multiple near 13 times for fiscal 2026.

Stanley Black & Decker projected CAM’s fiscal 2025 revenue at about $405 million to $415 million, with adjusted EBITDA margins approaching the high teens. CAM’s results will remain in continuing operations until the deal closes. Stanley Black & Decker plans to use the net cash proceeds to reduce debt toward a target of 2.5 times net debt to adjusted EBITDA, aiming to improve capital allocation flexibility.

Howmet’s forward-looking disclosures list risks including regulatory approval delays or denials, termination events, integration challenges, and potential disruptions involving customers, employees, or suppliers.