From today’s press release:
The Stanley Works (NYSE: SWK), a worldwide supplier of quality tools and engineered solutions for industrial, construction and do-it-yourself use, and security solutions for commercial applications, and The Black & Decker Corporation (NYSE: BDK), a global manufacturer and marketer of quality power tools and accessories, hardware and home improvement products, and technology-based fastening systems, announced today that they have entered into a definitive merger agreement to create Stanley Black & Decker, an $8.4 billion global industrial leader in an all-stock transaction valued at approximately $4.5 billion.
According to MarketWatch, Stanley will own 50.5% of the new company, and Stanley’s current chairman and CEO, John Lundgren, will take over as CEO. Nolan Archibald, who was CEO of Black & Decker for 24 years, will be the executive chairman for three years.
We’re still trying to figure out our opinion of this. On one hand, we regularly enjoy Stanley innovation. What will happen when Stanley’s engineers mix with Black & Decker’s, and how will all this affect each brands’ daughter companies such as Porter Cable, Dewalt, and all of the many others?