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As Sears continues to search for ways to make its business profitable again, a bidding war may be underway for the company’s Craftsman tool business, Bloomberg reports.
Earlier this year, Sears announced it was looking to generate more cash through its Craftsman, Kenmore and DieHard brands.
Now, it seems that cash may come from selling Craftsman. A few of companies that are reportedly bidding on Craftsman include Stanley Black & Decker Inc. and Hong Kong’s Techtronic Industries Co., according to the Bloomberg article. Apex Tool Group and Husqvarna have also shown interest, the article says.
Final bids are due by the end of October and may reveal Craftsman’s value to be approximately $2 billion, Bloomberg sources say.
Craftman’s sale may be up in the air, but the interest it has generated reflects the strength of its brand, Allison Ames, CEO of a brand consulting firm, tells Bloomberg.
“There are not that many brands with the heritage and trust of a Craftsman in the home-improvement space,” Ames says. “Sears just was not in a position to properly invest in it.”
Sears was once the largest retailer in the U.S., but has struggled for many years to compete with other big-box chains such as Target and Walmart, according to Reuters.
