Stanley Works buys Black & Decker
New Britain, CT & Towson, MD -- The Stanley Works, a worldwide supplier of tools and engineered solutions ...
New Britain, CT & Towson, MD — The Stanley Works, a worldwide supplier of tools and engineered solutions for industrial, construction and do-it-yourself use, and security solutions for commercial applications, and The Black & Decker Corporation, a global manufacturer and marketer of power tools and accessories, hardware and home improvement products, and technology-based fastening systems, have entered into a definitive merger agreement to create Stanley Black & Decker, an $8.4 billion industrial corporation in an all-stock transaction valued at approximately $4.5 billion.
The combination brings together two highly complementary companies with iconic brands and strong growth prospects. Founded in 1843, Stanley is a diversified industrial company with a global leadership position in hand tools and strong construction and do-it-yourself (CDIY), security and industrial businesses with well-known brand names such as Stanley, FatMax, Bostitch, Facom, Proto, Mac Tools, Sonitrol, Stanley Security Solutions, Best, and Vidmar.
With roots dating back to 1910, Black & Decker brings a global leadership position in power tools and a diverse product offering under an array of renowned brands including Black & Decker, DeWalt, Porter-Cable, Emhart Teknologies, Kwikset, Baldwin and Price Pfister.
Under the terms of the transaction, which has been approved by the boards of directors of both companies, Black & Decker shareholders will receive a fixed ratio of 1.275 shares of Stanley common stock for each share of Black & Decker common stock they own, representing an implied premium of 22.1% to Black & Decker’s share price as of Friday, Oct. 30, 2009. Upon closing, which is expected in the first half of 2010, Stanley shareholders will own approximately 50.5% of the equity of the combined company and Black & Decker shareholders will own approximately 49.5%. The nine members of the current Stanley board of directors will be joined by six new members from Black & Decker’s board of directors.
John F. Lundgren, chairman and chief executive officer of Stanley, will be president and chief executive officer of the combined company. Nolan D. Archibald, chairman, president, and chief executive officer of Black & Decker, who has been CEO for 24 years, will be executive chairman of the combined company for three years.
Additional information on the transaction can be found at www.stanleyblackanddecker.com.