American tool firms unite to gain strength | Shanghai Daily

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November 4, 2009

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American tool firms unite to gain strength

STANLEY Works tool company is buying rival Black & Decker Corp for US$4.5 billion, the two companies said on Monday.

Stanley shareholders will own about 50.5 percent of the combined company, which will be the nation's largest tool maker and be named Stanley Black & Decker.

Black & Decker shareholders will own about 49.5 percent after the all-stock deal is complete.

Stanley Chairman John F. Lundgren will be president and CEO.

"This is a unique opportunity to bring together two great companies, each with first-rate brands, and provide enhanced opportunities to generate superior returns as we build on this new, larger platform," Lundgren said in a statement.

Under the terms of the deal, Black & Decker shareholders will receive 1.28 shares of Stanley Works for each share they own. The nine members of Stanley Works' board will remain in place and be joined by six new members from Black & Decker's board.

Senior executives said the deal would eventually cut costs by US$350 million.




 

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