Black & Decker (BDK)

Stanley Works agreed to buy Black & Decker Corp. for $4.5 billion in stock, in a deal that will enable the companies--household names in the U.S. tools industry--to cut costs and exert more influence on pricing. Both companies have felt the pressues of the recession, particularly given their close links with the housing industry. The companies expect the combination, which has been approved by both companies' boards, will result in savings of $350 million a year and to add to earnings by the third year. The transaction would represent "a landmark move in the tools industry,??? and one that makes strong sense as the housing market resumes some growth and raw materials prices rebound, said Brian Sozzi, retail analyst at Wall Street Strategies. Together the companies have greater purchasing power.

Nov 2 · 10:09:00 PM · Source: Company News
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by Larry Etter