Stanley Works to Acquire Black & Decker
Toolsnob tipped us to some big news in the world of tools. Stanley Works will acquire Black & Decker for $4.5billion in an all-stock deal.
According to the WSJ:
This deal combines two iconic U.S. hand-tool and power-tool makers whose fortunes have faded amid a collapse in the housing market and a broader industrial slowdown.
Stanley is the smaller company, based on sales and employees, but will be the acquirer in the deal, which comes amid a slow period in deal making.
The two companies, will have combined annual sales of $8.4 billion and about 40,000 employees, the companies say. Stanley has annual sales of around $3.85 billion and Black & Decker has annual sales of around $4.85 billion.
The companies said they are looking for the combination to reap savings of $350 million a year and also add $1 per share to the bottom line in three years.
The deal has been approved by the respective boards but still needs shareholder and regulatory approval.
As Toolsnob states this would make them the biggest toolbox on the block as it also includes brands such as DeWalt and Porter-Cable. Interesting to see how this plays out.