The Stanley Works will acquire The Black & Decker Corp. in an all-stock, $4.5-billion transaction. Stanley supplies tools for industrial, construction, and do-it-yourself use; and Black & Decker manufactures power tools and accessories, hardware and home improvement products, and technology-based fastening systems.
Announcing the deal, the two companies listed a series of reasons to explain the consolidation, including: creating a “comprehensive portfolio of iconic brands”; presenting “complementary global product and service offerings”; establishing a “stronger, more diversified global company”; delivering “significant shareholder value creation”; and enhancing the financial strength.
The new Stanley Black & Decker will comprise the largest U.S. toolmaker, with numerous brands that include Stanley, FatMax, Bostitch, Facom, Proto, Mac Tools, Sonitrol, Stanley Security Solutions, Best, and Vidmar; and Black & Decker, DeWalt, Porter-Cable, Emhart Teknologies, Kwikset, Baldwin and Price Pfister.
Directors of both companies have approved the takeover. Black & Decker shareholders will receive a fixed ratio of 1.275 shares of Stanley common stock for each share of Black & Decker common stock they own. Stanley shareholders will own approximately 50.5% of the combined company’s equity; Black & Decker shareholders will own approximately 49.5%.
Stanley chairman and CEO John F. Lundgren will be president and CEO of the combined company. Nolan D. Archibald, chairman, president, and chief executive officer of Black & Decker, who has been CEO for 24 years, will be executive chairman of the combined company for three years.
Lundgren called the takeover “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.”
He said Stanley and Black & Decker together will have offer a portfolio of products that encompass all major tool categories and proved resources to support expansion of the combined security and industrial businesses.
Stanley Works to Buy Black & Decker for $4.5 Billion
Combined firm to consolidate brands into largest U.S. toolmaker