Stanley Black & Decker has completed its purchase of the Craftsman brand from Sears Holdings Corporation for approximately $900 million in cash.
According to the company, the acquisition gives Stanley Black & Decker the right to develop, manufacture and sell Craftsman-branded products outside the Sears Holdings and Sears Hometown & Outlet Stores distribution channels.
The company said it has made a $525 million cash payment to Sears Holdings at closing and will make a $250 million payment at the end of the year and three annual payments to Sears Holdings of between 2.5% and 3.5% on new Stanley Black & Decker sales of Craftsman products through year 15 of the deal.
“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 and will provide more information on our distribution plans as they are developed,” said James Loree, Stanley Black & Decker’s president and CEO. “We are confident that we can grow Craftsman while continuing to execute on our other core strategic initiatives, leveraging our world class innovation, commercial and operational excellence and experienced team.”
In a separate statement, Edward Lampert, chairman and CEO of Sears Holdings, said, “The successful closing of the Craftsman transaction provides immediate liquidity to Sears Holdings, while enabling us to participate in the future growth of the Craftsman brand.”
