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Stanley Black & Decker announced it has completed its purchase of the Craftsman brand from Sears Holdings Corp. for approximately $900 million.
The acquisition, which was first announced in January, gives “Stanley Black & Decker the right to develop, manufacture and sell Craftsman-branded products outside the Sears Holdings and Sears Hometown & Outlet Stores distribution channels,” according to a press release from the manufacturer.
Stanley Black & Decker president and CEO James M. Loree expressed the company’s excitement to finalize the deal and continue “providing reliable products at a good value” to the brand’s loyal consumer following. Loree says the company plans to invest in the Craftsman brand by focusing on quality, innovation and U.S. manufacturing. The goal is to increase sales through new channels, and he adds that Stanley will announce distribution plans as they develop.
“We are confident that we can grow Craftsman while continuing to execute on our core strategic initiatives, leveraging our world class innovation, commercial and operational excellence and experienced team,” Loree says in the press release.
He also adds that the Craftsman warranty will remain for existing customers. The company also plans to provide similar warranties in the future.
Stanley Black & Decker made a $525 million cash payment to Sears Holdings at closing. The company will make a $250 million payment at the end of year three and annual payments to Sears Holdings of between 2.5 percent and 3.5 percent on new Stanley Black & Decker sales of Craftsman brand products through year 15.
