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Article: Wall Street Worries Over Black & Decker; Buying Emhart Corp. Caused Debt Difficulties
- Article from:
- The Washington Post
- Article date:
- February 5, 1990
- Author:
CopyrightThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
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Wall Street is keeping a wary eye on Black & Decker Corp.'s
effort to digest a giant takeover deal.
As part of an aggressive plan to strengthen its core business,
the tool and home appliance company last year paid $2.8 billion to
buy Emhart Corp., a Connecticut-based industrial and consumer
products company.
The idea was to keep the Emhart pieces that would help Black &
Decker grow, and sell the rest for money to help finance the buyout.
Things did not quite work that way.
Black & Decker borrowed $3.8 billion from a variety of sources
to finance the purchase and associated costs of buying Emhart.
Interest and other expenses related to those loans so far have choked
off profits at ...