Stanley Black & Decker (NYSE: SWK), New Britain, CT, has agreed to acquire the Craftsman brand from Sears Holdings for $900 million.
The transaction provides Stanley Black & Decker with the rights to develop, manufacture and sell Craftsman-branded products in non-Sears Holdings retail, industrial and online sales channels across the U.S. and in other countries.
As part of the agreement, Sears Holdings will continue to offer Craftsman-branded products, sourced from existing suppliers, through its current retail channels via a perpetual license from Stanley Black & Decker, which will be royalty-free for the first 15 years after closing and royalty-bearing thereafter.
About 10 percent of Craftsman-branded products are sold outside of Sears Holdings and the agreement will enable Stanley Black & Decker to significantly increase Craftsman sales in these untapped channels.
Stanley Black & Decker in October agreed to acquire the tools business of Newell Brands Inc., Hoboken, NJ, which includes the industrial cutting, hand tool and power tool accessory brands Irwin and Lenox, for $2 billion.
