Stanley Buys Black & Decker

Stanley Works, New Britain, Conn., has acquired Towson, Md.-based Black & Decker in a stock-purchase deal valued at $4.5 billion. The deal represents a 22.1% premium to Black & Decker shareholders, who will receive 1.275 shares of Stanley for each of their Black & Decker shares. Stanley will own 50.5% of the new company. Stanley is a leading producer of hand and mechanical tools as well as pneumatic and hydraulic tools. In 2008 Stanley had sales of $4.43 billion, with 18,225 employees. Black & Decker, which is a leader in the power-tools market, had sales of $6.09 billion in 2008 and employed 22,100 workers. Both firms were hit hard by the recession in the housing market and the deal is seen as repositioning them for an anticipated upturn.