Craftsman Tool Brand Sold To Stanley Black & Decker; Sears Will Continue To Sell Line

Posted On: 1/12/2017

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TAGS: Stanley Black & Decker Inc., Craftsman tools, Sears Holdings Corp., James M. Loree, vending

NEW BRITAIN, CT -- Stanley Black & Decker Inc. will acquire Craftsman brand tools, a longtime staple in virtually every vending and coin machine operator's shop in the U.S. According to officials at both Sears Holdings Corp. and Stanley, the $900 million deal will close this year.

Under the terms of the agreement, Stanley Black & Decker gains the rights to develop, manufacture and sell Craftsman products in non-Sears Holdings retail, industrial and online sales channels in the U.S. and other countries. Sears will continue to offer the Craftsman brand, sourced from existing suppliers, through a perpetual license from Stanley. The license is royalty-free for 15 years.

Introduced by Sears in 1927, Craftsman is one of the most-recognized hardware brands in the country. According to legend, Sears purchased the name "Craftsman" for $500 from the Marion-Craftsman Tool Co.

"This agreement represents a significant opportunity to grow the market by increasing the availability of Craftsman products to consumers in previously underpenetrated channels," said Stanley president and chief executive James M. Loree.

Loree added that Stanley plans to invest in the Craftsman brand and will attempt to increase sales through new retail, online and mobile channels. Stanley has reportedly increased its manufacturing workforce by 40% over the past three years.