Stanley Black & Decker completed its purchase of the Craftsman brand from Sears Holdings Corp. for approximately $900 million.
The acquisition, first announced in January, gives “Stanley Black & Decker the right to develop, manufacture and sell Craftsman-branded products outside the Sears Holdings and Sears Hometown & Outlet Stores distribution channels,” according to a press release from the manufacturer.
Sears Holdings will continue sourcing and selling Craftsman-branded products in all its retail channels under perpetual license agreement
The agreement consists of $525 million in cash paid at closing, a $250 million payment at end of year three, and annual payments to Sears Holdings of between 2.5% and 3.5% on new Stanley Black & Decker sales of Craftsman products through year 15.
Sears Holding’s press release on the deal says, “Stanley Black & Decker will significantly increase availability and innovation of Craftsman products and add manufacturing jobs in the U.S. to support growth.”