The merger of Towson-based Black & Decker Corp. and Stanley Works will mean that most of the 250 corporate jobs at Black & Decker’s headquarters at 701 E. Joppa Road “are likely to the eliminated,” according to Black & Decker’s Roger Young, vice president of media relations.

Officials of both companies say the merger, announced Monday, is expected to benefit both firms. The headquarters of the new $8.4 billion company, Stanley Black & Decker, will be in New Britain, Conn.

“Stanley will take the leadership roles,” Young said. “Obviously, it’s not good news for a number of employees in Towson.”

However, Young said, the hit won’t be so bad for the rest of the 1,500 or so employees in Maryland who work in Black & Decker’s power tool division — most of whom are also based at the Towson facility — because that division will remain headquartered on East Joppa Road.

The $4.5 billion, all-stock transaction is expected to take until the first quarter of 2010 to be finalized.

When employees arrived at Black & Decker’s headquarters Tuesday, some were still processing the news. Others were just finding out.

One woman, who declined to identify herself, said she had just learned about the deal that morning.

Another employee, who also declined to be named, said some of his coworkers — those who’d left early the previous day or didn’t watch the news Monday night — were unaware of the merger until they arrived at the office Tuesday.

“Some people aren’t finding out until this morning,” he said.

The man said he has been with the company for almost 13 years and works in information technology. He said at first, he wasn’t sure whether or not to be concerned about losing his job, but decided, “I’m not (worried).”

“We’ve gone through these things before — layoffs and then good times too,” he said.

But he said some of his coworkers are worried. “I’m sure a lot of people are,” he added.

In a letter Monday to Black & Decker employees, Nolan Archibald, the company’s chairman, president and CEO, 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.”

A fact sheet released by the company said officials have identified $350 million in cost “synergies” that the two firms will be able to share, but added, “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.”

Loss on the home front

The merger means Towson loses its only Fortune 500 company.

“I didn’t see this coming at all,” said Nancy Hafford, executive director of the Towson Chamber of Commerce.
 
For Towson, “it’s a tremendous loss,” she said, and not just in terms of high-paying jobs and the prestige of having a huge company’s headquarters in Towson.

Black & Decker often used Towson as its training quarters, Hafford said, and would bring in hundreds of employees and put them up in hotels. Those employees would patronize local restaurants and shops.

“Will this change that?” she asked. “And will it mean Black & Decker will do something with its property? They have a huge compound back there and another facility on Mylander Lane.”

Black & Decker has been a good neighbor, said Ed Kilcullen, president of the Greater Towson Council of Community Associations, which represents nearly 30 neighborhoods.
 
But the company property abuts Greenbrier and East Towson, he said, and if there are any plans to redevelop the site, “it’s obviously something we are going to have to watch out for.”

“It’s not good news. I think they’ve been a stable presence in Towson and they’ve provided jobs for the entire region,” he said.

Greater Towson Committee president Larry Schmidt, whose organization encourages commercial development in Towson, said he was saddened by the news.

“Black & Decker as an institution has always been supportive of the GTC and of Towson,” he said. “It’s a blow to Towson and the county ... (but) I’m pleased they are keeping the power tool division here.”

David Iannucci, executive director of Baltimore County’s Office of Economic Development, said that while the loss of Black & Decker is a blow, “there are 375,000 jobs in the county.”

“It’s easy to overplay the significance of this from a prestige and a perception of loss,” Iannucci said. “In the long term, it will have a minimal effect, but obviously we want to keep as many jobs in the county as we can.”

He said the biggest effect might come in terms of how the county sells itself to other businesses looking at the county.

“It certainly does have an effect in terms of the loss of bragging rights for having a headquarters of a Fortune 500 company,” Iannucci said.

Nuts and bolts

The merger of Black & Decker, which deals in power tools and hardware, and Stanley, which specializes in tools as well as security systems, was not prompted by the lagging economy, Young said.

“It took a while to reach an agreement, but both boards realized it was beneficial to both companies,” he said.

Stanley, with 18,000 employees and operations in 17 states and 15 foreign countries, may have posted a 30 percent annual decrease in profits in 2008, but still chalked up $4.4 billion in sales, which yielded a $225 million profit.

Black & Decker, with 20,000 employees and operations in five states and six counties, posted a 43 percent decline in profits in 2008, but sold $6.1 billion in goods, yielding a $293.6 million profit.

John Lundgren, CEO of Stanley, will be president and CEO of the new company. Archibald will be executive chairman of the company for three years.

“Black & Decker has a long, proud tradition,” said Young. “I’m glad they are keeping the name.”

Jay R. Thompson and Bryan P. Sears contributed to this story.

More on the merger between Black & Decker and Stanley Works can be found at the Web site the two companies created.

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user comments (3)

user nlowman says...

Where is the County Council on this! These ar 250 high paying jobs! Has Baltimore County talked to Stanley?

Posted 4:44 PM, 11.06.09

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user stevetowson says...

Every time someone buys an imported product, they create a demand for foreign labor, and cause the loss of an American Job. People will keep buying that made in China stuff that lines the shelves of Walmart, Target, and even Sears, then they run to the County Council, the Congress, and the President complaining about job losses. Fixing the problem starts with YOUR next purchase.

Posted 5:25 PM, 11.06.09

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user dindygirl says...

I am just glad Nolan Archibald will be well taken care of. He is such a great man with such a concern the loyal employees who serve him. I bet Mr. Black and Mr. Decker are uneasy in their graves.

Posted 7:01 PM, 11.09.09

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