Stanley Works buys Black & Decker
Supply chain consolidation expected to save $350 million over three years
Tom Stundza -- Purchasing, 11/3/2009 9:11:45 AM
A new hand and power tools company called Stanley Black & Decker will emerge in early 2010 from The Stanley Works acquisition of Black & Decker in a $4.5 billion all-stock deal. The merger is expected to save about $350 million in costs over the next three years, according to a statement, from the consolidation of two global supply chain organizations into a "global low-cost sourcing unit."
"Joining these two companies together creates a powerful engine for growth, both as markets around the world recover and over the long-term," says Stanley CEO John Lundgren, in a statement. Lundgren will be president and CEO of the new company.
A new two-company website says "the combination of The Stanley Works and Black & Decker will unite two highly complementary companies with iconic brands and strong growth prospects to create a stronger, globally diversified industrial enterprise." The combined company will retain corporate headquarters in New Britain, Conn., and the power tools headquarters remains in Towson. Md.
Stanley owns brand names including FatMax, Bostitch, Facom, Proto and Mac Tools. Black & Decker, known for its power tools, owns Kwikset, Baldwin, DeWalt, Delta Machinery/Porter-Cable, Emhart Teknologies and Price Pfister.
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