Stanley Works to Purchase Black & Decker
Posted on November 2, 2009The Wall Street Journal reports that Stanley Works in acquiring Black & Decker for $4.5 billion. The merger involves well-known tools and hardware brands including Stanley, Black & Decker, FatMax, DeWalt, Bostitch, Porter-Cable, Facom, Emhart Teknologies, Proto, Kwikset, Mac Tools and more.
The companies expect the combination will result in savings of $350 million a year and see the deal adding $1 a share to earnings by the third year.Bloomberg reports that there will be job cuts. Stanley Chairman and Chief Executive Officer John Lundgren told Bloomberg that fewer than 4,000 jobs - 10% of total positions at the combined company - will be cut. Stanley and Black & Decker have already set up an informational website about the merger at stanleyblackanddecker.com.
They also touted their complementary products and market fits. Black & Decker's position in power tools, security hardware products and engineered fasteners has no significant overlap with Stanley's product and service offerings in hand tools and mechanical and electronic security products, the companies said.
John F. Lundgren, chairman and chief executive of Stanley, will be president and CEO of the combined company. Black & Decker leader Nolan D. Archibald will be executive chairman for three years.