Stanley-Craftsman deal is in the books
New Britain, Conn.-based Stanley Black & Decker closed the deal on its purchase of the Craftsman Brand from Sears Holdings Corporation.
As previously reported, the deal called for Stanley to pay $550 million cash up front, $250 million at the end of year three, plus various annual payments.
In a statement released today, Stanley Black & Decker’s president and CEO James M. Loree said Stanley will honor the Craftsman warranty, invest in the brand and provide more information on distribution plans when those plans are developed.
“We will invest in the brand with a focus on quality, innovation and U.S. manufacturing, with the goal of rapidly increasing sales through new channels,” he added.
The company says the company remains in the "integration process." It also released a fact sheet on the transaction, which includes the following Q&A.
Why is Stanley Black & Decker purchasing Craftsman?
Stanley Black & Decker believes that Craftsman adds to its breadth of brands and provides even more solutions to the end-user. Stanley Black & Decker also believes it can bring innovation and investment back to Craftsman, making it stronger than ever before. Craftsman has a rich history, high consumer awareness, purchase intention and loyalty. It’s a complementary addition to the Stanley Black & Decker portfolio that will create long-term value for users and will greatly expand the distribution of Craftsman-branded products.
When will this acquisition take effect?
Stanley Black & Decker will begin working immediately to make Craftsman products available to more people than ever before, but this will take some time.
Will the product line remain the same?
Stanley Black & Decker remains focused on cost, quality, and delivery of solutions to customers at the highest standards. We are confident that there is an opportunity to build upon Craftsman’s heritage as an iconic American brand that stands for high quality, value-oriented products.
Will Craftsman be manufactured in the United States?
Stanley Black & Decker will be localizing as much manufacturing as possible, consistent with our operating model of manufacturing as close to our customers as possible. Stanley Black & Decker will focus on U.S. manufacturing, using global materials, with the confidence that this will grow the Craftsman brand.
Will Sears continue to sell Craftsman products?
Yes, Sears will continue sourcing, marketing and selling Craftsman-branded products in their stores, independent from Stanley Black & Decker.
