Build something great.
Stanley to buy Black & Decker
Published: 05 November, 2009
US: Stanley Works has agreed to buy Black & Decker for about £2.7bn. The combination of the two largest US toolmakers in an all-stock transaction will cut costs by $350m a year, Bloomberg reports.
The new company, to be known as Stanley Black & Decker, will have combined annual sales of more than £5bn.
Under the deal, which has been approved by both US companies' boards, Stanley shareholders will own 50.5% of the shares and Black & Decker's the rest.
Fewer than 4000 jobs, or less than 10% of total positions at the combined company will be cut.
Most of the job cuts will be in corporate offices, as well as through purchasing, regional and business-unit consolidations and factory efficiencies, said Stanley chairman and chief executive officer John Lundgren.
He will be the president and chief executive officer of the combined company, while Nolan Archibald, chairman and chief executive officer of Black & Decker, will be the executive chairman of the combined company for three years.
Stanley Works traces its roots to Frederick Trent Stanley, who opened a shop in New Britain in 1843, making door bolts and hardware out of wrought iron. Sixty-seven years later, S Duncan Black and Alonzo Decker opened a machine shop in Baltimore, US.
This is the fourth time the two companies have considered combining since 1986.