Sears Sells Craftsman Brand to Stanley Black & Decker
Sears Gets Name Royalty-Free for 15 Years, Expanded Distribution
It’s been a household name for more than 80 years. Chances are nearly all of you reading this have at least one tool in your toolbox embossed with the Craftsman name. Sears’ famous line of reasonably priced, no-hassle return hand tools and line of electric and pneumatic tools is being sold to Stanley Black & Decker for nearly $1 billion dollars. Under the deal, Sears retains full distribution rights to the tools at its retail outlets, which include Kmart, and royalty-free use of the Craftsman name for 15 years after the deal closing and a 3 percent royalty thereafter. Stanley Black & Decker takes over product development and marketing of the Craftsman brand, and has the right to expand distribution among other channels.
Stanley Black & Decker will pay Sears Holdings $525 million at closing, $250 million at the end of year three, and incremental payments thereafter for a total of $900 million. Look for expanded distribution of Craftsman tools through Northern California–based Orchard Supply Hardware, which was owned by Sears from 1996-2012 and sold to Lowe’s in 2013. Orchard Supply currently sells Craftsman tools. Lowe’s is also a prime candidate to sell the full lineup of Craftsman hand and power tools. Other potential outlets to receive an expanded selection of Craftsman tools include Amazon, Walmart, and other regional and national hardware chains.
Source: Sears Holdings