Stanley Black and Decker Buys Craftsman
The deal offers Stanley expansion opportunities in new territory, such as lawn and garden.
Stanley Black and Decker (SWK), the tools and hardware superpower, announced yesterday that it is acquiring the Craftsman Brand from Sears Holdings and their CEO and biggest investor Edward Lampert for $900 million. Sears is trying to raise cash after losing money in their Sears and Kmart stores for five years. The deal comes less than three months after Stanley bought the Newell tool brands which include Irwin, Vise-grip and Lenox.
Stanley’s move to giant status started in 2009 when it bought power tool maker Black and Decker for $4.5 billion. In the case of the Newell acquisition, there is a lot of overlap between products in Stanley’s existing lines and the products offered by the acquired companies. Things are different for the Craftsman acquisition, which includes a popular and wide-ranging line of lawn and garden tools and equipment. This will be new territory for the New Britain, Ct., based company.
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Why is Black & Decker ($4.5 billion) worth so much more than Craftsman ($900 million)?