Bulletin: Stanley Black&Decker Inc. Ratings Unaffected By Acquisition Of Craftsman Brand

NEW YORK (S&P Global Ratings) Jan. 5, 2017--S&P Global Ratings said today that its ratings and outlook on Stanley Black&Decker Inc. (A/Stable/A-1) are unchanged at this time following the announcement that it entered into an agreement to acquire the Craftsman brand from Sears Holdings. The acquisition of Craftsman will require Stanley to make a $525 million cash payment at closing, a $250 million payment at end of year three, and annual payments to Sears Holdings of between 2.5% and 3.5% on new Stanley Black&Decker sales of Craftsman products through year 15 of the agreement. We expect the purchase of the Craftsman brand, as well as Stanley's previously announced purchase of Newell Tools for $1.95 billion, will

...NEW YORK (S&P Global Ratings) Jan. 5, 2017--S&P Global Ratings said today that its ratings and outlook on Stanley Black & Decker Inc. (A/Stable/A-1) are unchanged at this time following the announcement that it entered into an agreement to acquire the Craftsman brand from Sears Holdings. The acquisition of Craftsman will require Stanley to make a $525 million cash payment at closing, a $250 million payment at end of year three, and annual payments to Sears Holdings of between 2.5% and 3.5% on new Stanley Black & Decker sales of Craftsman products through year 15 of the agreement. We expect the purchase of the Craftsman brand, as well as Stanley's previously announced purchase of Newell Tools for $1.95 billion, will close in 2017 and will be funded by a combination of short term borrowings, cash on hand, and proceeds from the previously announced sale of Stanley's Mechanical Security business to dormakaba for $725 million. We note that depending on the exact timing of the purchases of Newell...

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