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

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Home / Knowledge / News / Apparel/Garments / Stanley Black acquires Craftsman brand from Sears Holdings

Stanley Black acquires Craftsman brand from Sears Holdings

09
Jan '17

Courtesy: Sears holding

S&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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