A powerful legacy, a future of growth
In November 2009, The Stanley Works announced the most significant transaction
in our company's 166-year history. It was a deal in the making as far
back as the early 1990s, and one that has undeniable strategic and industrial logic.
In 2009, all of the pieces came together to create this transformational event —
the creation of Stanley Black & Decker.
The opportunity to combine Stanley with Black & Decker —
to join two companies with complementary products, iconic brands, shared values
and rich American histories — was one-of-a-kind. This union creates a stronger,
more globally diversified industrial company and a tremendous springboard for growth,
and we jumped on it.
Gaining strength in a challenging economy
Throughout 2009, we were already reaping the benefits of buckling down early and
adjusting our business to be a stronger, more competitive Stanley in the face of
the challenging economic environment. The transaction with Black & Decker presented
us with the opportunity to double the size of our organization and strengthen every
area of our business — giving us an even more powerful engine for growth coming
out of the downturn.
Strategic and financial benefits
The strategic and financial benefits of this combination are overwhelmingly compelling:
Strategic Benefits
- A global leader in hand and power tools
- Iconic brand portfolio — over 250 years of combined history
- Greater scale in hand and power tools and storage, mechanical security, and engineered
fastening
- World-class innovation process
- Global low-cost sourcing and manufacturing platforms
- Additional presence in high-growth emerging markets (Latin America, Middle East
and Eastern Europe)
- Adds attractive new engineered fastening growth platform
Financial Benefits
- Highly accretive to EPS; approximately $1.00 per share projected by Year 3
- $350 million in cost synergies annually
- Opportunity for margin improvement
- Free cash flow of approximately $1 billion and over $1.5 billion in EBITDA by Year
3
- Increased resources to invest in security solutions, engineered fastening and other
high-growth platforms
- Strong balance sheet
Integration and implementation
Our integration planning has been extensive and meticulous, and with the recent
completion of the transaction on March 12, 2010, we are laser-focused on execution
and the implementation of the principles of SFS throughout
the Black & Decker organization. Stanley has proven time and again that we know
how to successfully integrate new businesses and we are already well on our way
to delivering on our promise of creating significant value for shareholders through
this transformative transaction.
Visit the new
Stanley Black & Decker website.
Download a full copy of the 2009 Stanley Black
& Decker Annual Report To Shareholders, which includes the Letter to Shareholders,
Stanley Financial Summaries and the Stanley 10-K. You can also download a copy of
the 2009 Black & Decker 10-K.