Stanley completes Newell Tools and Craftsman acquisitions
Stanley Black & Decker announced that it has successfully completed its acquisition of the Tools business of Newell Brands for $1.95 billion in cash.
"With the completion of the Newell Tools acquisition, we have further bolstered our presence in the global tools industry. The addition of the extraordinary Irwin and Lenox brands extends our reach into the plumbing and electrical trades and adds complementary products to our hand tool and power tool accessories businesses, allowing us to provide our customers and consumers with a more comprehensive, best-in-class offering," said Stanley Black & Decker's president and chief executive officer, James M. Loree.
The Newell Tools transaction is expected to be immediately accretive to earnings adding approximately 24 cents per share in 2017, excluding approximately $80 million of restructuring and other deal and integration-related costs, and approximately $40 million of non-cash inventory step-up charges. As a result, Stanley Black and Decker now expects 2017 earnings per share to be from $7.63 to $7.83 per share, and adjusted EPS to be $6.98 to $7.18 per share.
Stanley also announced that the company has completed its purchase of the Craftsman brand from Sears Holdings Corporation for a net present value of approximately $900 million in cash, giving Stanley Black & Decker the right to develop, manufacture and sell Craftsman-branded products outside the Sears Holdings and Sears Hometown & Outlet Stores distribution channels.
As previously announced, Stanley Black & Decker has made a $525 million cash payment to Sears Holdings at closing and will make a $250 million payment at the end of year three and annual payments to Sears Holdings of between 2.5% and 3.5% on new Stanley Black & Decker sales of Craftsman products through year 15.