NEW YORK (CNNMoney.com) — In a major consolidation of the tool industry, Stanley Works agreed to acquire Black & Decker in a $4.5 billion all-stock deal, the companies said Monday.
Under the terms of the deal, Black & Decker (BDK, Fortune 500) shareholders will receive 1.275 shares of Stanley Works (SWK) common stock for each B&D share. That’s a 22.1% premium to Black & Decker’s closing share price on Friday.
The deal is expected to close in early 2010, and the new company will be called Stanley Black & Decker.
Black & Decker shares rose almost 20% in after-hours trading, while Stanley shares jumped 2.6%.
Stanley, which is a leader in hand tools, owns brand names including FatMax, Bostitch and Mac Tools. Last month, Stanley raised its 2009 earnings outlook to $2.84 to $2.94 per share from its previous prediction of $2.34 to $2.84 per share.
Black & Decker, known for its power tools, owns Kwikset, Baldwin and Price Pfister, among others.
A strong nation, like a strong person, can afford to be gentle, firm, thoughtful, and restrained. It can afford to extend a helping hand to others. It’s a weak nation, like a weak person, that must behave with bluster and boasting and rashness and other signs of insecurity. –Jimmy Carter
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>>"Black & Decker, known for its power tools, owns......."
Just rambling here......
I thought that Black and Decker had already bought Dewalt, which had already bought Porter Cable.
And if that's true, then the poll has grown a lot smaller in the past five years or so.
I won't be laughing at the lies when I'm gone,
And I can't question how or when or why when I'm gone;
I can't live proud enough to die when I'm gone,
So I guess I'll have to do it while I'm here. (Phil Ochs)
Soon only one company will be "making" tools in North America.
I wonder if Stanley will change the way the takeover of PC has been handled? In any event looks like more products will be rationalized out of existence. I hope they decide to produce one high end pro type line of portable power tools. I would prefer not to buy from German or Japanese companies (albeit all tools from all companies soon to be made in China).
Edited 11/2/2009 6:15 pm ET by sisyphus
Stanley still makes a few tools here, I bought a tape measure Friday that was made in the USA. Also there new line of planes was made in Mexico, using Sheffield steel from UK, and they have a few UK made products. So...maybe it won't be all bad, and if they can revive Porter Cable some it would be really nice.
So did Stanley buy Dewalt and PC too? or did they just get Black and Decker? was this a "package deal"?
Based on the article I read they bought the entire Black and Decker corporation which makes Black and Decker, Price Pfister, Dewalt, Delta, Porter Cable, Kwikset, and other stuff.
I'd like to see Stanley take the best tools of each line (ie PC, Dewalt, Bostitch et al) and make a heavy duty pro line. Ideally they could bring back some of the models that have been abandoned. I presume they now have the rights and specs for all the old PC and B&D heavy duty stuff. I'd like to be able to get support and replacements for my super sawcat, 653 versaplane, Rockwell belt sander, wormdrive jigsaw etc.
Hopefully they will realize that even though a heavy duty line may not be that profitable it will have research and development value. It would also provide luster to their consumer lines especially if the name is similar ( Dewalt Professional for example). It would also make it more difficult for Makita, Bosch, Ryobi (Milwaukee), Fein and Festool to nibble away at their market.
So does this mean that the Bostitch pneumatic tools are now competing against the Dewalt pneumatic tools. But they are owned by the same company.
And Porter Cable guns too.
Yeah, but that's nothing new. Milwaukee, Ridgid, and Ryobi are all the same company too (TTI), and they "compete" with one another.Justin Fink - FHB Editorial
Yeah, they are competing against themselves but it is also an opportunity. They can differentiate each line with different prices, quality and advertising (they can share R&D and distribution costs). Alternatively they can keep the lines similar. Either way the consumer goes to the store and finds half of the tools on the shelf appear to be different but are made by the same company. Like toothpaste (IIRC), if five out of ten brands on the shelf are made by your company you should get a larger market share than if your company only makes one brand out of six.
Stanley tools seem to be sold everywhere I go, every little hardware store has them. I wonder if that would now mean that every place that sells Stanley will have access to PC, Delta, Dewalt etc through the same distribution channels.
Not new. Over 30 years ago a coworker of mine (working on auto computers) was at a GM development lab and the guys there said "Hey, you wanna see a Wankel?" "Sure," says our guy and they take him into a lab to see the engine running. He looks at it and says "Uh, isn't that the Ford Wankel?" (He'd seen the same design in a Ford shop a few weeks earlier.) "Yep," says they, "we always trade engines back and forth so that we can keep ahead of the Japanese." (If only it were that easy.)
A strong nation, like a strong person, can afford to be gentle, firm, thoughtful, and restrained. It can afford to extend a helping hand to others. It's a weak nation, like a weak person, that must behave with bluster and boasting and rashness and other signs of insecurity. --Jimmy Carter
Off topic a bit but your tool collection is worth drooling over. Those super sawcats are great saws and the ability to remove the side to use as a jam saw is neat. I googled the wormdrive jig saws and they are pretty impressive looking as well, shame all the examples on eBay are so expensive.Even though Stanley is often bashed on various forums for their newer tools one thing they are really good at is stocking old parts. I was able to order cutters and knives for my Stanley 45 plane and the thing was made decades before my birth. Maybe they'll revive carrying parts for some of the old tools.
I have respect for Stanley, I think they do a good job making reasonable quality and affordable hand tools. I don't recall ever using their routers (or any of their other power tools?).
There was a Porter Cable wormdrive jigsaw still for sale here in a local hardware store a couple years ago. The salesman said he thought it was probably "the last one in North America". Old stock that's for sure. He added that a guy was coming in every other week who wanted to buy it but "the boss" refused to lower the price ($540 CDN IIRC). I don't understand that attitude because AFAIK the blades are no longer being made. I think I bought all the wood cutting blades that were available in the city when Black and Decker took over PC a few years ago.