NEW BRITAIN - Stanley Black & Decker on Friday completed the acquisition of the tools business of Newell Brands, just hours after officially incorporating Craftsman into its portfolio.
The $1.95 billion transaction was first announced in October. The Newell tools unit includes the industrial cutting, hand tool and power tool accessory brands Irwin and Lenox.
“With the completion of the Newell acquisition, we have further bolstered our presence in the global tools industry,” said James M. Loree, Stanley Black & Decker's president and chief executive officer. “The addition of the extraordinary Irwin and Lenox brands extends our reach into the plumbing and electrical trades and adds complementary products to our hand tool and power tool accessories businesses, allowing us to provide our customers and consumers with a more comprehensive, best-in-class offering. We welcome the associates of Newell Tools to Stanley Black & Decker and look forward to a seamless integration process.”
Newell Brands said last fall that it would be selling several divisions as part of a consolidation. The move to sell businesses with annual sales of about $1.5 billion comes more than a year after it acquired Jarden Corp. for about $13 billion and Elmer’s for $600 million. The consolidation move - 32 business units into 16 operating divisions - is expected to transform Newell from a holding company to an operating company, with a new set of investment priorities and a sharpened portfolio.
The Newell deal was Stanley Black & Decker’s first major acquisition since 2013 and the first significant business development under Loree, who became president and CEO in August 2016.
Friday’s announcement came a day after Stanley completed its purchase of the Craftsman brand from Sears Holdings Corp. The approximately $900 million cash transaction gives Stanley Black & Decker the right to develop, manufacture and sell Craftsman-branded products outside the Sears distribution channels.
Stanley’s history in New Britain dates to 1843. The manufacturer merged with Black & Decker in 2010. The acquisition is expected to have no negative impact on its city plants or world headquarters campus, according to officials.
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