Stanley Black & Decker acquired the Craftsman brand from the struggling Sears for a total consideration of $900 million in January 2017. Stanley Black & Decker paid Sears $525 million in cash when the deal closed in March 2017, with a $250 million slug would be paid three years after the deal’s closure. Stanley also agreed to annual payments on new Stanley Black & Decker Craftsman sales through year 15 of the deal closing.
The company quickly unveiled 1,200 redesigned tools in August 2018. They are mostly being sold at Lowe’s and Amazon, with a long term plan of 70% of the Craftsman line being made in the U.S., up from about 40% currently.
Just one thing, though.
Sears is still selling the Craftsman collection online, and Wall Street analysts had put the Craftsman business as a $1 billion sales opportunity for Stanley Black & Decker.
Stanley sued Sears in Manhattan federal court because of its marketing that claims it’s the “real home” of the Craftsman brand. Sears also went so far as to introduce the Craftsman Ultimate Collection, a competing product, which Stanley said Sears didn’t get approved from them to release.
Stanley Black & Decker CEO James Loree has now gone all out to put to rest any investor fears, saying “Things are going great with Craftsman, we couldn’t be more excited. We are selling the tools like hotcakes.” Loree said the products are better quality than before when they were under Sears’ stewardship.
“We are revitalizing the Craftsman brand and opening it up to distribution across the United States — it’s a very exciting program, it’s going to be a big win for us from a revenue point of view,” he said.