Spike Spiegel
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http://www.wsj.com/articles/sears-sells-craftsman-brand-to-stanley-black-decker-1483623215
http://www.nytimes.com/2017/01/05/business/dealbook/sears-craftsman-retailing.html?_r=0
EDIT: Here's the list of 150 Sears and Kmart stores that will be closing.
http://www.usatoday.com/story/money/2017/01/05/sears-kmart-stores-closing/96195504/
Sears Sells Craftsman Brand, to Close 150 Stores
The cash-strapped retailer will sell its iconic Craftsman brand to Stanley for about $900 million
By Anne Steele
Sears Holdings Corp. said it would close another 150 stores and sell its Craftsman tool brand for $900 million, as the cash-strapped retailer continues to shrink and battle slumping sales.
Sears is flipping the Craftsman brand to Stanley Black & Decker Inc., and it will license back the ability to sell Craftsman-branded products royalty-free for 15 years after the deal's closing. The acquisition gives Stanley the rights to develop, manufacture and sell Craftsman-branded products outside of Sears.
At present, just 10% of Craftsman-branded products are sold outside of Sears. Stanley Black & Decker said the deal will help boost Craftsman sales in untapped channels.
”We intend to invest in the brand and rapidly increase sales through these new channels, including retail, industrial, mobile and online," said Stanley Black & Decker Chief Executive James Loree. Stanley also recently signed a $1.95 billion deal to buy Newell Brands Inc.'s tools business.
A Sears spokesman confirmed the unlimited lifetime warranty on Craftsman hand tools made in the U.S.—”a hallmark of the brand for generations"—will be kept in place.
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On Wednesday, Sears announced sweeping closures of 150 of its namesake and Kmart stores—which it called ”a difficult but necessary step as we take actions to strengthen the company's operations and fund its transformation."
http://www.nytimes.com/2017/01/05/business/dealbook/sears-craftsman-retailing.html?_r=0
And Stanley gobbles up another competitor to expand its influence over the tool world.Sears Agrees to Sell Craftsman Brand in a Bid to Raise Cash
By Michael J. de la Merced
Jan. 5, 2017
At a tough time for Sears Holdings, the beleaguered retailer has collected some much-needed cash — by selling one of its most beloved brands.
The company said on Thursday that it had sold its Craftsman line of tools to Stanley Black & Decker for at least $775 million, part of an effort to raise cash as it continues to grapple with troubles in its business.
For Sears, selling one of its classic brands — one it created nearly a century ago — is the latest move to bolster its balance sheet during a prolonged sales slump. The company's chairman and chief executive, Edward S. Lampert, has struggled for years with ways to help the company, as much through esoteric financial maneuvers as through operational fixes.
The company said on Thursday that comparable-store sales at its Sears and Kmart units for November and December were down at least 12 percent.
That kind of poor performance has battered Sears's financial health. As of Oct. 29, the retailer said that it had $258 million in cash and equivalents on hand, compared with $3.1 billion in long-term debt. Its market value on Thursday morning, by point of comparison, stood at $1.2 billion even after a jump in its stock price after the Craftsman news.
On Thursday, Sears listed its latest initiatives aimed at shoring up its cash position, from closing 150 more stores to raising up to $1 billion through both a $500 million loan backed by its real estate and a previously announced loan from Mr. Lampert's hedge fund.
[...]
Under the terms of the deal, Stanley Black & Decker will pay $525 million when the deal closes and an additional $250 million at the end of the third year after closing. Sears will also collect a percentage of new Craftsman sales for 15 years after the deal closes. All told, the transaction is now valued at about $900 million.
Sears will continue to sell Craftsman products in its stores under a licensing agreement that is free for the first 15 years. After that, the chain will pay Stanley Black & Decker a 3 percent fee.
The deal is expected to close by the end of the year.
EDIT: Here's the list of 150 Sears and Kmart stores that will be closing.
http://www.usatoday.com/story/money/2017/01/05/sears-kmart-stores-closing/96195504/