Stanley Black & Decker - Page 2

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.

scsmith42 · 11-03-2009, 08:44 PM

Originally Posted by FredP

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.

The job cuts are supposed to be in the area of duplicate middle management, which is the way that it normally works. The jobs of the folks actually building the stuff should be relatively safe.

FredP · 11-03-2009, 09:02 PM

Originally Posted by scsmith42

The job cuts are supposed to be in the area of duplicate middle management, which is the way that it normally works. The jobs of the folks actually building the stuff should be relatively safe.

it's still jobs no matter how ya slice it.

CarvedTones · 11-03-2009, 09:52 PM

Nick,

Congratulations! I am sure you're well aware about the only time we wouldn't want to be in your shoes is when a thread like this turns ugly.

Fred,

Keep in mind that a lot of the stock holders are in via the mutual fund in their 401k. Not all the pockets behind corprorate cost cutting are deep.

All,

I told a funny ( to me anyway - "BLACK and sTANley" ) but I really don't get the negativity. Stanley? Planes, rules, levels, garage door openers (yeah, that was an odd acquisition) but mostly planes - they rule the vintage roost and still make very servicable and affordable ones now. B & D? Their greatest innovation is not a power tool and has now become a generic term for the many imitators it inspired. i'll post later if no one guesses, but I bet someone does. But I have owned and still own a few pieces of the orange and black. It's consumer grade stuff, but I don't always need extreme precision and I like bargains. I love the 18v cordless yard tools.

FredP · 11-03-2009, 11:00 PM

not tryin to be negative here. I'm happy that stanley has the controling interest. what I am hoping to see from this is a better product from B&d.

I stopped buying stuff from them years ago because it just didn't hold up under lite usage. It would be nice to buy a homowner grade tool that actually does what it's suposed to for a reasonable amount of time.

their coffee pots work ok but tools? not so much. years ago they built tools that stood the test of time and performed great. it's sad they seem to have lost that edge. who knows maybe stanley will lift em back up.

that remains to be seen.

MikeF · 11-03-2009, 11:18 PM

Originally Posted by FredP

not tryin to be negative here. I'm happy that stanley has the controling interest. what I am hoping to see from this is a better product from B&d. I stopped buying stuff from them years ago because it just didn't hold up under lite usage. It would be nice to buy a homowner grade tool that actually does what it's suposed to for a reasonable amount of time. their coffee pots work ok but tools? not so much. years ago they built tools that stood the test of time and performed great. it's sad they seem to have lost that edge. who knows maybe stanley will lift em back up. that remains to be seen.

I agree with Fred.

They jumped the shark when they started selling their AutoTape Measure, AutoWrench, etc