According to a statement released by Stanley Black & Decker last Thursday, the company is planning to buy the tool brand Craftsman under Sears Holdings. The acquisition is estimated to cost $900 million. This is in a move to strengthen the current portfolio that Black & Decker have in its hand and power tools department.
Sears is currently struggling on the market but a recent rise was seen on its shares which showed an increase of 49 cents or 4.7 per cent. It is now at $10.85 per share. On a statement released by Sears last May, it has the intention to expand their business which houses the brands DieHard vehicle battery, Kenmore appliance and Craftsman. Their plan was to make it available in not just the Sears and Kmart stores but in other retailers as well.
Selling their brand Craftsman is also a part of the bigger picture when it comes to business strategy that Sears has laid out. This is in an attempt to boost the company’s liquidity. The plan also includes other target which is to close around 150 stores under Sears and Kmart because they have shown to be unprofitable. Aside from this, they are taking other unrevealed steps.
The product line of Craftsman has a lot of power tools under it including hand tools, drills and saws. Example of hand tools are screw drivers and wrenches. They also have lawn mower, gardening equipment and barbecue grills.
There are many brands under Stanley Black & Decker including Porter-Cable, Black+Decker, Dewalt and Stanley.
In the last three months, the acquisition of the Sears deal is the second huge one for the company Stanley Black & Decker. They have also made a deal to purchase the tool business of Newell Brands which cost $1.95 billion. The acquisition was made in October of last year. Now, the company has more brands in their line up including the new Irwin and Lenox.
Because of the deal to buy Craftsman, Stanley Black & Decker now have the right to manufacture and supply these products in other stores as well as online. Furthermore, if you are looking for power tools and fasteners in Australia, just check online for several shops offering one of your choice.