Home / news / Sears Holdings Sells Craftsman Tools for $900 Million

Sears Holdings Sells Craftsman Tools for $900 Million

collected by :Rechard Bernard

follow the latest news of” market news” from different sites to most famous technicals /Reuters Editorial by 2017-01-09 at 13:47

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BRIEF-Stanley Black & Decker to purchase Craftsman brand from Sears Holdings

BRIEF-Stanley Black & Decker to purchase Craftsman brand from Sears Holdings*/

– Jan 5 Sears Holdings Corp :* Stanley Black & Decker reaches agreement to purchase craftsman brand from sears holdings* Sears Holdings Corp – agreement consists of $525 million cash payment at closing* EPS accretion to Stanley Black & Decker, excluding charges, of approximately $0.10-$0.15 per share in year one* Sears Holdings Corp – agreement consists of payment of $250 million at end of year three* Existing sales of Craftsman products outside Sears Holdings and Sears Hometown distribution channels, which will be assumed immediately* Sears Holdings Corp -EPS accretion to Stanley Black & Decker increasing to about $0.35-$0.45 by year five and to approximately $0.70-$0.80 by year ten* Sears Holdings Corp – agreement consists of annual payments to co of between 2.5% and 3.5% on new Stanley Black & Decker sales of Craftsman products* Transaction was approved by boards of directors of both companies* Sears Holdings Corp – net present value of all cash payments in deal is approximately $900 million* Sears Holdings Corp – license granted to Sears Holdings will be royalty-free for 15 years, then 3% thereafter.Source text for Eikon: Further company coverage:
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Sears Holdings Sells Craftsman Tools for $900 Million

Sears Holdings Sells Craftsman Tools for $900 Million*/

– Sears Holdings ( shld ) said on Thursday it had reached a deal to sell its popular Craftsman tool brand to Stanley Black & Decker ( swk ) , its latest move in the last week or so to shore up its finances with urgently needed money as sales continue to collapse.The company is selling Craftsman, a brand that generated sales of $2 billion in the last year, 90% of which were at Sears and Kmart stores, for a total of about $900 million.That includes $525 million at the closing of the deal, another $250 million at end of year three, as well as a percentage of Stanley Black & Decker Craftsman sales for 15 years.
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United States Of America : Stanley Black acquires Craftsman brand from Sears Holdings

United States Of America : Stanley Black acquires Craftsman brand from Sears Holdings*/

– Courtesy: Sears holdingS&P 500 global diversified company Stanley Black & Decker has acquired the Craftsman brand from Sears Holdings Corporation.Under the terms of the agreement, Stanley Black will have the rights to develop, manufacture and sell Craftsman branded products in non Sears Holdings retail channels, while Sears Holdings will continue to sell them in its stores.Sears Holdings will be able to sell Craftsman-branded products, royalty-free for the first 15 years and royalty-bearing thereafter.According to Stanley Black, as of date, just around 10 per cent of Craftsman products are sold outside of Sears Holdings channels, which will enable Stanley Black & Decker to significantly increase Craftsman sales outside of Sears Holdings.Stanley Black & Decker will pay Sears Holdings $525 million at closing, $250 million at end of year three, and annual payments on new Stanley Black & Decker Craftsman sales through year 15, with the net present value of all these cash payments being around $900 million.(AR)Fibre2Fashion News Desk – India
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