Black & Decker, Stanley build a $4.5 billion deal
Combined company will retain power tool headquarters in Towson
Staff reports
Posted 11/02/09
The Towson-based Black & Decker Corporation would be celebrating its 100th anniversary in 2010, but on Monday a guy named Stanley crashed the party.
The Fortune 500 power tool, hardware and home improvement company announced Monday that it is merging in a $4.5 billion all-stock deal to Stanley Works, based in Connecticut, to create Stanley Black & Decker.
Black & Decker, headquartered on East Joppa Road in Towson, employs about 20,000 people worldwide, with an estimated 1,200 in Towson.
Stanley employs an estimated 18,000 worldwide.
In a joint statement, the companies said Stanley Black & Decker would retain a presence in both of the former companies’ current home bases. The corporate headquarters will be in New Britain, Conn., while the company’s power tools headquarters will be in Towson.
“Black & Decker’s position in power tools, security hardware products and ... fasteners fits seamlessly with Stanley’s product and service offerings ... with no significant overlap in product lines,” the company statement said.
Asked Monday evening if the deal was struck because of the weak economy, Roger Young, vice president of media relations for Black & Decker, said, “The answer is, ‘no.’ “
Young said the deal had been in the works for some time, adding, “It took a while to reach an agreement, but both boards realized it was beneficial to both companies.”
Stanley Black & Decker will be 50.5 percent owned by Stanley shareholders and 49.5 percent owned by Black & Decker shareholders. The new company will begin with annual sales of $8.4 billion, according to company officials. Officials said they expect the deal to be finalized in the first quarter of 2010.
In a letter Monday to Black & Decker employees, Nolan Archibald, chairman, president and CEO of Black & Decker, wrote:
“I know this news is unexpected, and I certainly appreciate that it will cause uncertainty about what this means for many of you. We will work to address that uncertainty as quickly as possible, but understandably it will take some time.”
A fact sheet released by the company said:
“For now, there will be no immediate changes. However, ... the companies have identified approximately $350 million in annual cost synergies ... from reductions in corporate overhead, business unit and regional consolidation, manufacturing and distribution and purchasing.
“It is important to note that approximately 50 percent of those synergies are not related to people. In fact, we expect less than 10 percent of the combined company’s workforce to be affected.
Black & Decker Corporation was founded in 1910 by Duncan Black and Alonzo Decker as a small machine shop in Baltimore.
More on the merger between Black & Decker and Stanley Works can be found at a Web site the two companies created regarding the deal, HERE.
The Fortune 500 power tool, hardware and home improvement company announced Monday that it is merging in a $4.5 billion all-stock deal to Stanley Works, based in Connecticut, to create Stanley Black & Decker.
Black & Decker, headquartered on East Joppa Road in Towson, employs about 20,000 people worldwide, with an estimated 1,200 in Towson.
Stanley employs an estimated 18,000 worldwide.
In a joint statement, the companies said Stanley Black & Decker would retain a presence in both of the former companies’ current home bases. The corporate headquarters will be in New Britain, Conn., while the company’s power tools headquarters will be in Towson.
“Black & Decker’s position in power tools, security hardware products and ... fasteners fits seamlessly with Stanley’s product and service offerings ... with no significant overlap in product lines,” the company statement said.
Asked Monday evening if the deal was struck because of the weak economy, Roger Young, vice president of media relations for Black & Decker, said, “The answer is, ‘no.’ “
Young said the deal had been in the works for some time, adding, “It took a while to reach an agreement, but both boards realized it was beneficial to both companies.”
Stanley Black & Decker will be 50.5 percent owned by Stanley shareholders and 49.5 percent owned by Black & Decker shareholders. The new company will begin with annual sales of $8.4 billion, according to company officials. Officials said they expect the deal to be finalized in the first quarter of 2010.
In a letter Monday to Black & Decker employees, Nolan Archibald, chairman, president and CEO of Black & Decker, wrote:
“I know this news is unexpected, and I certainly appreciate that it will cause uncertainty about what this means for many of you. We will work to address that uncertainty as quickly as possible, but understandably it will take some time.”
A fact sheet released by the company said:
“For now, there will be no immediate changes. However, ... the companies have identified approximately $350 million in annual cost synergies ... from reductions in corporate overhead, business unit and regional consolidation, manufacturing and distribution and purchasing.
“It is important to note that approximately 50 percent of those synergies are not related to people. In fact, we expect less than 10 percent of the combined company’s workforce to be affected.
Black & Decker Corporation was founded in 1910 by Duncan Black and Alonzo Decker as a small machine shop in Baltimore.
More on the merger between Black & Decker and Stanley Works can be found at a Web site the two companies created regarding the deal, HERE.
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