Sears Falls After Craftsman Bidder Stanley Black & Decker Does Rival Tool Deal
Shares of Sears (SHLD), owner of the Craftsman tool brand, are falling after rival tool maker Stanley Black & Decker (SWK) said it was buying Newell Brands' (NWL) tools business for $1.95B. Stanley Black & Decker was thought to be a potential bidder for Sears brand of tools Craftsman.
WHAT'S NOTABLE: In late August, Sears said it would explore alternatives for its Kenmore, Craftsman and DieHard brands and its Sears Home Services business by evaluating potential partnerships or other transactions. The company added "We initiated a formal process and have received interest from a variety of potential partners, both domestic and international, and including retailers, original equipment manufacturers, financial investors and others." According to a Bloomberg report on October 4, bidders, including Stanley Black & Decker and Hong Kong-based Techtronic, were showing interest in Sears' Craftsman business. According to the report, Apex Tool and Husqvarna had also explored potential offers for the business, Bloomberg said at the time. Final bids could value it at roughly $2B and are due at the end of October, the report added.
PRICE ACTION: Sears is off its earlier lows and is now down fractionally to $11.00 per share in afternoon trading.
OTHERS TO WATCH: Stanley Black & Decker is up 2.5% to $120.62 and Newell Brands is up 1.17% to $50.93.
Disclosure: None.