The Stanley Works acquired Black & Decker today, creating a company with an estimated worth of $8.4 billion.
The deal took shape as an all-stock transaction where Stanley ponied up $4.5 billion for a majority share in B&D.
Stanley, of New Britain, Conn., and Black & Decker of Towson, Md., produce tools and construction materials. They are among the most widely recognized brands in their industry. Stanley makes the Bostitch line of nailers, and B&D is the parent company of DeWalt and Porter-Cable, brands familiar to woodworkers and builders alike.
“Stanley and Black & Decker together will have a comprehensive offering across all major tool categories and greater resources to support continued expansion of our combined security and industrial businesses,” John F. Lundgren, Stanley’s chairman and chief executive, said in a statement.
Nolan D. Archibald, Black & Decker’s chairman and chief executive, said the deal would result in $350 million in cost savings.
The deal, which was approved by the boards of directors of both companies, is expected to close in the first half of 2010. The next step is to put this before the shareholders and regulators.
In a prepared statement, Mr. Lundgren said, “This is a unique opportunity to bring together two great companies, each with first-rate brands, and provide enhanced opportunities to generate superior returns as we build on this new, larger platform. Stanley and Black & Decker together will have a comprehensive offering across all major tool categories and greater resources to support continued expansion of our combined security and industrial businesses. The transaction is expected to create tremendous value for shareholders of both companies through the realization of significant cost synergies, operating margin expansion and enhanced growth opportunities. Joining these two companies together creates a powerful engine for growth, both as markets around the world recover and over the long-term.”
It’s been a tough year for companies in the construction and tool market. Consolidations and mergers can create strength, but they can also cause dificulties. The purchase of Delta and Porter-Cable by B&D from Pentair in 2004 resulted in hiccups with warehousing and distribution. For Connecticut, the home state of Stanley and The Taunton Press, it appears to be good news as a local company with a long history bolsters its size. Some local business leaders were optimistic about the news.
We have no word yet on whether the merger will result in any changes in the current lineup of tools or other products offered by these companies. But as tool news goes, this is one big mashup of global giants.
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So, according my tally, the tool world now stands as follows:
Stanley Black & Decker (as I'm told it will be called):
- StanleyWorks
- Bostitch
- Black & Decker
- DeWalt
- Delta
- Porter Cable
TTI:
- Milwaukee
- Ridgid
- Ryobi
- Stiletto
Bosch:
- Bosch
- Dremel
- Rotozip
- Vermont American
- Freud
And as far as my memory serves, Festool, Makita, Hitachi, Skil, Senco and Paslode are still pretty independent.
Am I missing any major ones?
Skil was acquired by Bosch in 1996.
whoops, Skil was an obvious one to miss, sorry about that. Ok, so that leaves Festool, Makita, and Hitachi for mainstream power tool makers, with Senco, Paslode and some others filling in the specialty gaps for pneumatics, etc.
Re:
JFink writes:
And as far as my memory serves, Festool, Makita, Hitachi, Skil, Senco and Paslode are still pretty independent.
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F.Y.I.
ITW Industrial Fastening = Paslode, Duo-Fast, and Josef Kihlberg
Global Fastening Solutions = Senco,TyRex,Omnifast, Nexicor, Nexibond, and Agrifast
Well, there's Metabo. Not sure who owns them, but I do know that the Ridgid angle grinder I have is awful similar to the Metabo I had prior...
Wonderful;
National unemployment is at 10+ % and this merger creates $350 million in savings mostly by eliminating good jobs. Will we see any benefits, like better or less expensive tools? Unlikey.
Just repeating above comment that Skil is owned by Bosch. You might also throw Panasonic into the mix.
Whoops. Missed the correction on Skil.
When did TTI purchase Ridgid. As far as I know Ridgid is owned by Emerson Electric.
TTI manufactures and designs for them, and Emerson supplies the motors.
Emerson makes Ridgid plumbing tools. Emerson had a partnership with Bosch until about 2006 when they sold their share to Bosch. At the time, Emerson owned the Skil brand as well as Vermont American among others. Many years ago Emerson made Craftsman for Sears, but had a major falling-out and terminated the partnership.
TTI currently has an agreement with Emerson to use the Ridgid brand name; Emerson doesn't manufacture any of the Ridgid power tools, although they do continue the old-school plumbing tools. Emerson also make Ridgid shop-vacs in St. Louis. But here is what Emerson CEO David Farr has to say in a recent interview with the St. Louis Herald:
“What do you think I am going to do?” Farr asked. “I’m not going to hire anybody in the United States. I’m moving. They are doing everything possible to destroy jobs.”
Search "David Farr Emerson" to read more.
"They" in the above quote are our current administration, especially Pres. Obama. What he fails to mention is that Emerson has spent years shipping jobs over-seas. Emerson's current stance isn't any different than it has been for many years - BCC (Best Cost Country) is a mantra. Never mind that many of their best suppliers (and most cost-competitive) are US-based.