Stanley Black & Decker

Stanley Black & Decker · 11-02-2009, 06:45 PM

November 2, 2009

I want to share with you some very important news about Black & Decker.
This afternoon, we announced that Black & Decker and The Stanley Works have agreed to
merge in a transaction that creates a larger, stronger, globally diversified industrial company with
a broad array of products and services. Together, our companies will be better positioned to
grow globally and provide greater value to our respective stakeholders.
By way of background, Stanley came to us several months ago to discuss the possibility of
combining our businesses to build a company that could grow faster as a combined entity than
either company could independently. Since that initial discussion, we have had numerous
interactions with Stanley and subsequent discussions with outside financial and legal advisors to
examine all aspects of the proposed merger and what it will mean for us. Our Board of Directors
concluded that uniting our two companies, with their complementary product and market fit,
makes excellent financial and strategic sense.
The new company will be named Stanley Black & Decker, and will be 50.5% owned by Stanley
shareholders and 49.5% owned by Black & Decker shareholders. It will begin with annual sales
of $8.4 billion and a comprehensive global product offering. We share a common heritage and
passion for developing innovative products that meet the evolving needs of our customers and
individual end users. We also share a commitment to operational excellence that will make our
new combined company the supplier of choice for these groups.
I will become the Executive Chairman of the new company, and John Lundgren, Stanley’s
current Chairman and Chief Executive Officer, will become the President and CEO of Stanley
Black & Decker. We are in the process of identifying the key leaders for the combined
company’s operating units. The new company will be headquartered in New Britain, CT, and
Towson will remain the Power Tools headquarters.
This merger draws on the historic and treasured legacy that both companies have earned, and
will position the new company to achieve profitable growth. We will combine Black & Decker’s
winning strategy of market-leading brands, world-class innovation, unmatched end-user focus
and global distribution with the highly respected Stanley brands. The new company will enjoy a
larger world-wide commercial and operational presence.

Gotcha6 · 11-02-2009, 07:01 PM

Congratulations are in order here.

Didn't know we had members in such high places.

Ya movin' t' New Haven?

Dragon · 11-02-2009, 07:11 PM

Congrats on the merger. Hopefully, that will signal a retention of jobs for the current workers and maybe bring the two entities together with a resolve to maintain and keep America growing.

Glennbear · 11-02-2009, 07:17 PM

Although some of the corporate mergers in recent years have not made much sense IMHO this one makes perfect sense. Stanley has the hand tool reputation and Black & Decker has the equivalent in corded tools. When mergers are made solely for financial reasons with no mutual expertise or experience I think both firms suffer but in this instance it seems logical. I do however have one reservation...........I cannot see myself using a hand plane that is bright red and emblazoned FIRESTORM

Woodman2k · 11-02-2009, 08:15 PM

Nick,
why don't I see word one about Dewalt,Porter Cable,Delta etc. etc. in the assetts listings.Even on CNN there is a article and the big three are nowhere to be found.Is Dewalt operated independent of Black and Decker.Either way,I grew up around alot of Stanley and B and D factories up in Conneticut and hope they bennefit from the acquistion.
Greg

LeftyTom · 11-02-2009, 08:32 PM

Will there be a clearance on the plain ol' B&D? Like when a company changes the packaging, it blows out the old stock at nice prices.

Douglas Robinson · 11-02-2009, 08:35 PM

I should have looked first as I posted something similar just now. B&D acquired Porter Cable and Dewalt at least 3 years ago, there is no need to separately list those lines as "assets."

woodnick · 11-02-2009, 08:58 PM

B & D is a parent
Stanlely is a parent
I let you quess who's who

jmauldin · 11-02-2009, 10:04 PM

Well, I hate to be the "gloom and doom" person, but I hate to see the merger. B&D, IMHP was at the bottom, merged with DeWalt, which IMHP was much better. Both went to the bottom! I hate to see that happen to a good company like Stanley.
Jim in Mayberry

Mike Davis · 11-02-2009, 10:08 PM

Yes, unfortunately the group sinks to the lowest common denominator. It would take a monumental effort to lift B&D. IMO they have always been bottom feeders.

froglips · 11-02-2009, 11:29 PM

Nick, sounds like you've been busy

Thanks for sharing this news with us.

Jim

scsmith42 · 11-03-2009, 12:05 AM

Nick, thanks for taking the time to fill us in on what's been happening with both companies. I wish John and Nolan Archibald the best of success with the merger, and hope that the combined company is able to move forward and achieve expanded levels of success for its customers, its employees, and its investors.

If they can make the merger a success for the employees of the combined company - challenge (and trust) the employees to make it a success for the customers and shareholders. Too much mindshare (which turns into marketshare) can be lost when employees are worried about keeping their jobs, and not worried enough about keeping (or growing) their customers.

Scott

SSuther · 11-03-2009, 12:07 AM

It'll be interesting to see how this merger affects product design and marketing of hand and power tools. Stanley recently chose to re-enter the higher quality hand tool market as part of their mix. Hope this doesn't wreck that decision.

JimmyC · 11-03-2009, 10:23 AM

As per the N & O, the deal will cut costs $350 million, including possible (ya think ?) job cuts. Most savings will come from reducing corporate overhead and consolidating business units and manufacturing, distribution, and purchasing.

(Johnny Carson holding a card to his head) The Great Karnak sees a company in the future that is less customer friendly and will be of lower quality.

FredP · 11-03-2009, 10:32 AM

Originally Posted by JimmyC

As per the N & O, the deal will cut costs $350 million, including possible (ya think ?) job cuts. Most savings will come from reducing corporate overhead and consolidating business units and manufacturing, distribution, and purchasing.

(Johnny Carson holding a card to his head) The Great Karnak sees a company in the future that is less customer friendly and will be of lower quality.

well..... the quality can't get much lower but on the plus side some foreign country is gonna get several thousand new jobs! unfortunately they will be our jobs.