Sears to Sell the Iconic Craftsman Brand After 90 Years
Sears announced today that it has agreed to sell the Craftsman brand to Stanley Black & Decker after controlling the iconic name in tools for 90 years. Stanley Black & Decker, which produces DeWalt tools as well, plans to expand the number of stores selling Craftsman, as only 10 percent of Craftsman products are currently sold in stores other than Sears, according to the Associated Press. Sears will continue to sell Craftsman tools as well.
Sears has been struggling for years, with both its revenue and stock value dropping over the past 12 months. The department store also announced today that it will be closing 150 of its 1,500 stores across the Americas.
The move is an attempt by Sears Holding Corp. to inject cash into the flagging company. Stanley is purchasing the Craftsman brand for about $900 million total, according to the AP. The terms of the sale include $525 million to be paid this year when the deal closes, $250 million after the third year, and Sears will also receive a percentage of Stanley's Craftsman sales for 15 years. After that time, Sears will start paying Stanley a percentage of its own Craftsman sales.
The sale is truly the end of an era, as both Sears and Craftsman have been associated with American manufacturing and craftsmanship for almost a century. The tool brand and the store that sells it are practically synonymous.
But the move could end up benefiting all parties. Both Sears and Stanley saw a modest bump to their shares in Thursday's midday trading, raising 6 percent and 1.4 percent respectively. And Stanley has announced that it plans to open a new U.S. plant and hire workers to make more Craftsman tools, according to AP, but details about the plant are not yet available.
For Sears to save itself, it's going to have to give up its beloved tool brand. Get ready to see Craftsman in Home Depot.
Source: Associated Press
You Might Also Like
