Stanley Works to buy Black & Decker for $4.5 billion
Deal is expected to close in the first half of 2010
In a blockbuster deal, Stanley Works late yesterday announced a $4.5 billion all stock deal to acquire the Black & Decker Company, a move that will create one of the largest tool companies in the world.
Under the terms of the deal, which has been approved by the boards of both companies, Black & Decker shareholders will receive 1.275 shares of Stanley common stock for each share of Black & Decker common stock they own. That represents a 22.1% premium to Black & Decker’s closing price Friday.
Stanley Chairman and Chief Executive John Lundgren will take over as chief executive of the combined company, which will reportedly be called Stanley Black & Decker. Nolan Archibald, chief executive of Black & Decker for 24 years, will become executive chairman for three years.
The nine members of the current Stanley board of directors will be joined by six new members from Black & Decker’s board.
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