Stanley Works to Merge With Black & Decker
A New Britain-based tool company will merge with Black & Decker
By MEREDITH MAZOL and LEANNE GENDREAU
Updated 6:51 AM EST, Tue, Nov 3, 2009
Local toolmaker Stanley Works is a powerhouse of hand tools, but the company plans to turn into a bigger powerhouse in the tool industry by merging with rival toolmaker Black & Decker.
The merger is an all-stock transaction valued at $4.5 billion that will bring together the two biggest names in the tool-making business. It will be called Stanley Black & Decker.
A spokesman for the New Britain-based Stanley said it is too early to tell if the merger would affect jobs or production in Connecticut. The combined company will have a presence in Connecticut and Maryland, where Black & Decker is based, according to a company news release.
The corporate headquarters will be in New Britain and James M. Loree, Executive Vice President and Chief Operating Officer of Stanley, will be EVP and COO of the combined company.
The Power Tools headquarters remaining in Towson.
Stanley Works was founded in New Britain in 1843 to manufacture door bolts and other hardware from wrought iron and has grown to the point where just about everyone has an iconic yellow and black tool somewhere in the house. The company is coming back from a difficult spring and a couple rounds of layoffs.
Stanley is also behind Bostitch and other companies, while Black & Decker is behind DeWalt, Kwikset and Price Pfister.
Stanley shareholders will own about 50.5 percent of the combined company, while Black & Decker shareholders will own an approximate 49.5 percent stake.
Boards of directors for each company approved the deal, which still must receive regulatory and shareholder approval.
First Published: Nov 2, 2009 8:29 PM EST
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