Stanley Works and Black & Decker, two of the biggest names in power and hand tools, have announced they are merging to create a US$8.4bn industry giant.
The deal is expected to be completed in the first half of 2010, with the new company operating under the name Stanley Black & Decker. Stanley shareholders will own 50.5% of the equity of the combined company and Black & Decker shareholders 49.5%.
Stanley Works’ iconic brands of Stanley hand tools and Bostitch fasteners and compressors, used in the joinery and timber building trades, will join with Black & Decker’s power tool range, which also includes the premium DeWalt brand.
Stanley Works CEO John Lundgren, who will become president and CEO of the new company, described the US$4.5bn merger as a “unique opportunity” to join two companies with “first-rate brands”.
“Stanley and Black & Decker together will have a comprehensive offering across all major tool categories and greater resources to support continued expansion,” said Mr Lundgren.
“Joining these two companies creates a powerful engine for growth, both as markets around the world recover and over the long term.”
Black & Decker CEO Nolan Archibald said the prospect of US$350m annual savings was one of the deal drivers. He said the new company would create outstanding benefits for customers.
