Thursday, January 5, 2017
Stanley Black & Decker said on Thursday it would buy Sears Holdings Corp.’s Craftsman tool brand for $900 million, strengthening its portfolio of hand and power tools.
Struggling Sears, whose shares were up 10.8 percent at $11.48 before the bell, said in May it wanted to expand the business housing its Craftsman, Kenmore appliance and DieHard vehicle battery brands beyond Sears and Kmart stores.
The Craftsman line includes power tools such as saws and drills and hand tools such as wrenches and screwdrivers as well as lawn mowers, barbecue grills and other gardening equipment.
Stanley Black & Decker’s brands include Stanley, Black & Decker, DeWalt and Porter-Cable.
The Craftsman deal will give Stanley Black & Decker the right to make and sell Craftsman-branded products in non-Sears retail, industrial and online sales channels.
The company’s shares were up 2.5 percent at $119.44.
Sears will continue to offer Craftsman-branded products at Sears and Kmart stores through a perpetual license from Stanley Black & Decker.
Stanley Black & Decker said it expected Craftsman-branded products to generate about $100 million of average annual revenue for the next 10 years.