On March 9, Stanley Black & Decker successfully completed its purchase of the Craftsman Brand from Sears Holdings Corporation for a net present value of approximately $900 million in cash. This acquisition gives Stanley Black & Decker the right to develop, manufacture and sell Craftsman-branded products outside the Sears Holdings and Sears Hometown & Outlet Stores distribution channels.
“We are pleased to complete the purchase of the Craftsman Brand, a legendary American brand with tremendous consumer awareness built on a legacy of providing reliable products at a good value and standing behind them,” says James M. Loree, Stanley Black & Decker’s president and chief executive officer.
Immediately upon acquisition, Stanley Black & Decker intended to begin broadening Craftsman’s product availability to its customers but announced that the process “would take some time.” To that end, “our efforts are now focused on supply chain activities to initially support sales into non-Sears Holding channels,” Loree says. “We are developing commercial strategies for the brand and remain very excited about the potential growth opportunities. We continue to see a clear path towards annual growth of approximately $100 million a year for the next decade.”
For loyal and long-time Craftsman customers, this change of ownership surely brings questions to mind. To that end, a March 9 news release from Stanley Black & Decker has provided a number of answers that eZine readers might find helpful to know. For your convenience, we offer a sampling of them here:
Will Sears continue to sell Craftsman products, and will the Craftsman warranty remain the same?
Stanley reports that Sears will continue sourcing, marketing and selling Craftsman-branded products in their stores, independently from Stanley Black & Decker. Further, Craftsman branded products will continue to be covered under their existing warranties.
Why did Stanley Black & Decker purchase Craftsman?
Stanley Black & Decker believes Craftsman’s rich history, high consumer awareness and loyal following adds to Stanley Black & Decker’s breadth of brands and can provide even more solutions to customers. The company also intends to “bring innovation and investment back to Craftsman, making it stronger than ever before.”
Will Craftsman’s product line remain the same?
Stanley Black & Decker reports that while it will remain focused on cost, quality and delivery of solutions to customers at the highest standards, “we are confident that there is an opportunity to build upon Craftsman’s heritage as an iconic American brand that stands for high quality, value-oriented products.”
Will Craftsman products be manufactured in the United States?
Stanley Black & Decker intends to localize as much manufacturing as possible, focusing on U.S. manufacturing with global materials, with the confidence that this will help to grow the Craftsman brand. “There’s a lot of excitement and positive energy around our stated intention of bringing manufacturing for the Craftsman Brand back to the United States,” Loree stated recently to investors. “Our plans for a new state-of-the-art manufacturing facility are starting to take shape.”
Learn more about Stanley Black & Decker’s purchase of Craftsman by clicking here.