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Sept 12 (Reuters) - Power tool maker Stanley Black & Decker Inc said on Wednesday it had agreed to buy a 20 percent stake in lawnmower maker MTD Products Inc for $234 million, upping investment in the market in outdoor garden equipment.
The company will also have the option to buy the remaining 80 percent of privately-held MTD beginning on July 1, 2021.
MTD, which reported more than $2 billion in revenue last year, makes lawn tractors, trimmers, chain saws, utility vehicles and other outdoor power tools.
"This investment in MTD increases our presence in the $20 billion global lawn and garden market in a financially and operationally prudent way," Stanley Black Chief Executive Officer James Loree said in a statement.
The Connecticut-based firm reported revenue of $12.75 billion last year from businesses ranging from selling knives and hammers to storage cabinets unders its Black + Decker, Craftsman, Dewalt, and Mac Tools brands.
Founded in 1932 in Cleveland, MTD is home to power tool brands including Cub Cadet, Troy-Bilt, Remington, Robomow, Rover and Wolf-Garten. (Reporting by Supantha Mukherjee in Bengaluru; Editing by Bernard Orr)