CLEVELAND, Oct. 13, 2016 /PRNewswire/ -- As released in the Associated Press, tool company Stanley Black & Decker Inc. is buying Newell Brands' tools division for $1.95 billion in cash.
"Newell Brands Inc. announced recently that it will be selling several divisions as part of its strategy to divest non-core operations and focus on businesses considered to have the greatest potential for growth. The move to sell businesses with annual sales of about $1.5 billion comes a year after the company bought Jarden Corp. for about $13 billion and Elmer's for $600 million. The businesses being sold supply hand tools, saw blades, and power tool accessories marketed under the IRWIN, LENOX, and HILMOR brand names."
The article can be read in full here: http://wtop.com/money/2016/10/stanley-black-decker-buying-newell-tools-unit-for-1-95b/
Regarding the impact this acquisition may have on market share, Freedonia Group industry analyst Reta Sober commented, "Sales of power tool accessories associated with the IRWIN, LENOX, and HILMOR brand names will further solidify Stanley Black & Decker's position as the leading supplier of power tools to the US market."
"In value terms, Stanley Black & Decker's estimated annual power tool sales outweigh its hand tool sales, but the acquisition of Newell Brands' tools division will boost the company's hand tool sales. Stanley Black & Decker was the third largest supplier of hand tools to the US market in 2015, and this acquisition has the potential to make Stanley Black & Decker the single largest supplier of hand tools to the US market," Sober says.
A new Power Tools study, written by Sober, can be accessed here: http://www.freedoniagroup.com/industry-study/3380/power-tools.htm
About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, market share information and profiles of the leading industry players. Reports can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.
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SOURCE The Freedonia Group