From WSJ:
Stanley Works and Black & Decker Corp. agreed to a $4.5billion all-stock deal that combines two iconic U.S. hand-tool and power-tool makers whose fortunes have faded amid a collapse in the housing market and a broader industrial slowdown.
Stanley is the smaller company, based on sales and employees, but will be the acquirer in the deal, which comes amid a slow period in deal making.
The deal holds a 22% premium for Black & Decker shareholders, who will own 49.5% of the company, while Stanley holders will have the rest. Black & Decker shareholders are receiving 1.275 shares of Stanley for each share of Black & Decker. Black & Decker shares closed Monday at $47.34. Stanley shares closed at $45.15.
The two companies are a tad close to my heart because of our business.
Source: WSJ
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