NEW BRITAIN, Conn. — Stanley Black & Decker announced Thursday that its board of directors has named Donald Allan, Jr., currently president and chief financial officer, the company's next chief executive officer, effective July 1.
Allan will succeed James M. Loree, who has served as CEO since 2016. Upon assuming his new role, Allan will join the board of directors and retain his title as president. The company has appointed Corbin Walburger to serve as interim chief financial officer, also effective July 1.
"Don Allan's appointment reflects the Board's succession planning, and in naming him as our next CEO, we have chosen a world-class executive with exceptional experience and leadership skills," said Andrea J. Ayers, the chair of the company's board. "Since arriving at the company in 1999, Don has been instrumental in driving the company's growth and transformation strategy. He is well respected throughout the organization as well as among our valued customers and the investment community. He is ideally suited to lead Stanley Black & Decker through its next stage of growth, and we expect a very smooth transition of leadership.
"The board greatly appreciates Jim Loree's leadership during his tenure at the company. His contributions to the strategic repositioning of the business, and his strong dedication to the company's key stakeholders, will be hallmarks of his legacy. Notably, he led the company through a period of significant growth, increasing annual revenues from continuing operations from $11 billion in 2016 to over $19 billion expected in 2022. We are grateful to Jim for building the foundation for the company's next period of growth and value creation."
Allan is a seasoned leader and 23-year veteran of Stanley Black & Decker who has played a key role in the company's evolution to become the world's leading tool company. During his time as president and CFO, he has focused on driving strategic, long-term profitable growth and has overseen the execution and advancement of the company's operating model. Allan has shared responsibility for global operations and supply chain, and has overseen the Stanley Security business, the Outdoor Products Group and Asia Tools & Storage. He has also led Finance, Information Technology, Margin Resiliency, Industry 4.0 and Advanced Analytics.
Walburger has been with Stanley Black & Decker for 14 years and currently serves as vice president of corporate business development with global leadership responsibility for mergers, acquisitions and divestitures, as well as the company's corporate venture initiative. He joined the company in 2008 following 10 years at Goldman, Sachs & Company.
The company has engaged Heidrick & Struggles to assist with the search for a permanent CFO.
"It has been an enormous privilege to serve as CEO of this iconic company. I am exceptionally proud of all we have been able to accomplish during my career at Stanley Black & Decker, particularly over the past six years as CEO, and I am confident that the company has a bright future ahead," Loree said. "I've worked closely with Don Allan for the past 23 years, and I am pleased to pass the baton to a leader of his extraordinary caliber."
"I am honored to be named CEO and appreciate the board's trust and support," Allan said. "I look forward to working with our 60,000 outstanding employees as we navigate through the challenges of the current market environment and execute on our strategy to deliver value to our customers and shareholders. I am very pleased that Corbin Walburger has agreed to serve as our Interim CFO. He brings impressive experience and expertise to his new role.
"Looking ahead, with our recent portfolio actions, Stanley Black & Decker is a more focused and streamlined company with leading franchises that serve the construction, outdoor and industrial markets. Our strong leadership team is committed to capitalizing on our organic growth catalysts, enhancing operational execution through price realization and cost prioritization, transforming the supply chain, and successfully completing our outdoor integrations and security divestitures."
To further support Stanley Black & Decker's organic growth imperatives, the company plans to rebalance $200-$250 million of current annualized investments to fund incremental commercial, engineering and supply chain resources to further accelerate supply chain productivity. It expects this plan to generate approximately $1 billion of value within the next five years in addition to supporting the organic growth imperatives in the Tools and Outdoor businesses over the next three years. These initiatives will help drive the company's near-term priorities and deliver significant free cash flow, which along with the completion of our previously announced $4 billion return of capital program in 2023, will support a multi-year period of organic growth, margin expansion and long-term shareholder value creation.
The company is reaffirming its 2022 outlook, which it provided on April 28. Specifically, for the full year 2022, the company anticipates diluted EPS of $7.20 to $8.30 on a GAAP basis and $9.50 to $10.50 on a non-GAAP adjusted basis. Free cash flow is expected to be approximately $1.0 billion to $1.5 billion.