Posted by: youngragingbull | October 9, 2012

Stanley Black & Decker sells unit for $1.4B

Tool-maker Stanley Black & Decker Inc. is selling its hardware and home-improvement business to Spectrum Brands Holdings Inc. for $1.4 billion in cash.

The hardware and home-improvement unit makes locksets, hardware and faucets for residential use and includes brands such as Pfister, Baldwin and Kwikset. Spectrum says the unit will diversify it’s product offerings.

Stanley Black & Decker said the sale is part of its ongoing strategy to diversify its revenue and geographic reach. The hardware and home-improvement unit gets 90 percent of its revenue from North America and more than 50 percent of its revenue from U.S. home-improvement stores.

Both companies’ boards have approved the transaction.

Spectrum Brands shares climbed $4.76, or 11.6 percent, to $45.91 in midday trading. Stanley Black & Decker shares shed $1.35, or 1.8 percent, to $72.88.

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