Stanley Works to Buy Black & Decker

According to Bloomberg Press  reported by Mark Clothier  Stanley Works agreed to buy Black and Decker Corp. for about $3.5 billion, combining the two largest U.S. toolmakers in an all-stock transaction that would reduce costs by $350 million annually.

Black & Decker, which includes brands DeWalt, Porter Cable, Delta and Kwikset door locks, and Stanley, which makes FatMax tape measures and Bostitch nail guns, said they plan to expand profit margins through the transaction. The housing industry contributed to U.S. economic growth for the first time in four years last quarter as tax credits sparked demand for homes and energy-efficient renovations.

The transaction will probably close in the first half of next year, the companies said.

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