Stanley Black & Decker is set to acquire a 20 percent stake in Medina’s MTD Products Inc. for $234 million in cash, and could acquire the remaining 80 percent of the $2 billion company beginning July 1, 2021. "This investment in MTD increases our presence in the $20 billion global lawn and garden market in a financially and operationally prudent way,” said Stanley Black & Decker's President and CEO James M. Loree in a statement. “We have always viewed outdoor products as an attractive growth category for us to expand our presence beyond handheld electric products. This transaction gives us the opportunity to do that with a world-class partner. MTD has a first-rate management team, talented employees and a mission, values and commitment to innovation that are very closely aligned with our own, and we are excited to move forward with them." This partnership significantly enhances Stanley Black & Decker and MTD's existing commercial relationship, which currently includes the manufacture of select outdoor products under the Craftsman brand. Going forward, the two companies will work together to pursue revenue and cost opportunities, improve operational efficiency and introduce new and innovative products for professional and residential outdoor equipment customers, leveraging their respective portfolios of strong brands. "MTD and Stanley Black & Decker are both proven leaders in our respective industries with iconic brands and world class capabilities," said MTD's Chairman and CEO Robert T. Moll in a statement. "We're both passionate about innovation with complementary businesses. Ultimately, this will give us more resources to bring really exciting products to our consumers." In connection with the transaction, Stanley Black & Decker will appoint two representatives to MTD's 11-member board of directors. Beginning in 2021, should Stanley Black & Decker choose to exercise its right to acquire the remaining 80 percent stake in MTD, the companies have agreed to a valuation multiple based on MTD's expected 2018 EBITDA, with a sharing arrangement for any future EBITDA growth. The transaction, which is expected to close in early 2019, is subject to regulatory approvals and customary closing conditions.