11/10/2009
NEWS BRIEFS
Stanley Works Merging with Black & Decker

Stanley Works Started As Boltmaker in 1843
While Stanley Works is known as a manufacturer of tools, hardware and specialty hardware products, the company was founded as a boltmaker more than 160 years ago.

Stanley Works was founded in 1843 by Frederick Trent Stanley, who established a shop in New Britain, CT, to manufacture door bolts and other hardware from wrought iron.

“Stanley’s Bolt Manufactory was only one of dozens of small foundries and other backyard industries in town struggling to make a go of it by turning out metal products,” according to the company website.

Today the company offers a selection of eye bolts, U bolts, barrel bolts and other fasteners through its Hardware division. ©2009 GlobalFastenerNews.com

Citing annual cost savings of $350 million, Stanley Works and Black & Decker announced a merger valued at $4.5 billion. The all-stock transaction will give Stanley a 50.5% stake in the new $8.4 billion company.

The new company, Stanley Black & Decker, will be headquartered in New Britain, CT, with the Power Tools headquarters remaining in Towson, MD.

“Black & Decker’s position in power tools, security hardware products and engineered fasteners fits seamlessly with Stanley’s product and service offerings in hand tools and mechanical and electronic security solutions, with no significant overlap in product lines,” the companies said in a statement.

Stanley Black & Decker will be led by Stanley CEO John Lundgren and COO James Loree. Black & Decker CEO Nolan Archibald will serve as executive chairman of the board for three years.

Black & Decker owns Emhart Teknologies, a global manufacturer of fasteners and assembly systems.

Wall Street praised the merger, with shares of Black & Decker jumping 31% following the announcement while Stanley Works stock has gained 10%.

Stanley Works manufactures and markets tools, hardware and specialty hardware products for home improvement, consumer, industrial and professional use. The company has 18,000 employees.

Fasteners Consistently Profitable for Black & Decker

Black & Decker’s Fastening and Assembly Systems has consistently ranked as one of Black & Decker’s most profitable businesses.

Fastener revenue totaled $700 million during 2008, with segment profit reaching $103.3 million.

Fastener sales during the first nine months of 2009 dropped 30% to $381.7 million, with operating income decreasing 74% to $22 million.

In September 2008 Black & Decker paid $24.1 million to acquire threaded fastener maker Spiralock.

Black & Decker’s principal fastener markets are automotive, transportation, construction, electronics, aerospace, machine tool and appliance industries. Principal fastener facilities are located in Danbury, CT; Montpelier, IN; Campbellsville and Hopkinsville, KY; Chesterfield, MI; Birmingham, England; Giessen, Germany; and Toyohashi, Japan. ©2009 GlobalFastenerNews.com

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Related Links:

• Stanley Black & Decker