The Stanley Works to Acquire Contact East; B-to-B Distributor Will Complement Stanley's Jensen Tools Business

Apr 12, 2001, 01:00 ET from The Stanley Works

    NEW BRITAIN, Conn. and NORTH ANDOVER, Mass., April 12 /PRNewswire/ -- The
 Stanley Works (NYSE:   SWK) and Contact East, Inc. announced today that they
 have signed a definitive agreement whereby Stanley will acquire 100% of the
 outstanding common shares of Contact East. With annual revenues approximating
 $100 million, Contact East is a leading business-to-business distributor of
 mission-critical tools and supplies for assembling, testing and repairing
 electronics in the United States. The acquisition is expected to be accretive
 to earnings in its first year.
     John M. Trani, Chairman and Chief Executive Officer of Stanley, commented:
 "One of our strategic thrusts is to expand in the industrial markets. In that
 regard, Contact East presents us with an exciting growth opportunity. It is an
 ideal addition to our portfolio due to its industrial customer base, excellent
 profitability and highly complementary fit with our Jensen Tools business."
     "Becoming a part of Stanley is a logical next step in the growth of our
 company," said Kai Juel, President and Chief Executive Officer of Contact
 East, who will lead Contact East and Jensen Tools after the acquisition.
 "Opportunities abound for expanding the breadth of products offered to our
 sets of existing customers and for developing new customer relationships. We
 now have the added strength to take both Contact East and Jensen Tools to the
 next level," he said.
     Contact East will operate as a subsidiary of Stanley and will remain based
 in North Andover, Massachusetts with its existing management team. Mr. Juel
 co-founded the company in 1963 as an independent sales organization
 specializing in equipment and specialty materials used in the then-emerging
 electronics industry. The company was a pioneer in business-to-business,
 direct marketing catalogs targeting the engineering community responsible for
 the manufacturing and testing of electronic assemblies. Stressing high order
 fulfillment rates, low-cost inventory management and superior customer
 service, Contact East established itself as a leader in served markets.
     Jensen Tools, a wholly-owned subsidiary of the Stanley Works, is the
 foremost supplier of tool kits, cases, tools, test instruments and equipment
 needed by technicians and service personnel in the computer, semiconductor and
 telecommunications industries. The Stanley Works, an S&P 500 company, is a
 worldwide supplier of tools and doors and related hardware products for
 professional, industrial and consumer use. In 2000, the company reported
 revenues of $2.75 billion.
 
     Contact:   Gerard J. Gould
                Vice President, Investor Relations
                860-827-3833 (office)
                860-658-2718 (home)
                ggould@stanleyworks.com
 
     The Stanley Works corporate press releases are available on the company's
 Internet web site at http://www.stanleyworks.com. Alternatively, they are
 available through PR Newswire's "Company News On-Call" service by FAX at
 800-758-5804, ext. 874363.
 
 

SOURCE The Stanley Works
    NEW BRITAIN, Conn. and NORTH ANDOVER, Mass., April 12 /PRNewswire/ -- The
 Stanley Works (NYSE:   SWK) and Contact East, Inc. announced today that they
 have signed a definitive agreement whereby Stanley will acquire 100% of the
 outstanding common shares of Contact East. With annual revenues approximating
 $100 million, Contact East is a leading business-to-business distributor of
 mission-critical tools and supplies for assembling, testing and repairing
 electronics in the United States. The acquisition is expected to be accretive
 to earnings in its first year.
     John M. Trani, Chairman and Chief Executive Officer of Stanley, commented:
 "One of our strategic thrusts is to expand in the industrial markets. In that
 regard, Contact East presents us with an exciting growth opportunity. It is an
 ideal addition to our portfolio due to its industrial customer base, excellent
 profitability and highly complementary fit with our Jensen Tools business."
     "Becoming a part of Stanley is a logical next step in the growth of our
 company," said Kai Juel, President and Chief Executive Officer of Contact
 East, who will lead Contact East and Jensen Tools after the acquisition.
 "Opportunities abound for expanding the breadth of products offered to our
 sets of existing customers and for developing new customer relationships. We
 now have the added strength to take both Contact East and Jensen Tools to the
 next level," he said.
     Contact East will operate as a subsidiary of Stanley and will remain based
 in North Andover, Massachusetts with its existing management team. Mr. Juel
 co-founded the company in 1963 as an independent sales organization
 specializing in equipment and specialty materials used in the then-emerging
 electronics industry. The company was a pioneer in business-to-business,
 direct marketing catalogs targeting the engineering community responsible for
 the manufacturing and testing of electronic assemblies. Stressing high order
 fulfillment rates, low-cost inventory management and superior customer
 service, Contact East established itself as a leader in served markets.
     Jensen Tools, a wholly-owned subsidiary of the Stanley Works, is the
 foremost supplier of tool kits, cases, tools, test instruments and equipment
 needed by technicians and service personnel in the computer, semiconductor and
 telecommunications industries. The Stanley Works, an S&P 500 company, is a
 worldwide supplier of tools and doors and related hardware products for
 professional, industrial and consumer use. In 2000, the company reported
 revenues of $2.75 billion.
 
     Contact:   Gerard J. Gould
                Vice President, Investor Relations
                860-827-3833 (office)
                860-658-2718 (home)
                ggould@stanleyworks.com
 
     The Stanley Works corporate press releases are available on the company's
 Internet web site at http://www.stanleyworks.com. Alternatively, they are
 available through PR Newswire's "Company News On-Call" service by FAX at
 800-758-5804, ext. 874363.
 
 SOURCE  The Stanley Works