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Article: Tool deal cuts cost, sets stage for profit
- Article from:
- The Boston Globe (Boston, MA)
- Article date:
- November 4, 2009
- Author:
CopyrightCopyright 2009 The Boston Globe. Provided by ProQuest LLC. (Hide copyright information)
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CHICAGO - Tool makers Stanley Works and Black & Decker Corp. are
betting that together they can wring out more profit and better
position themselves for a housing market recovery than they could
apart.
In an all-stock deal that would create the largest tool maker in
a fragmented market, Stanley Works agreed on Monday to pay $3.46
billion for rival Black & Decker.
The deal will cut costs by $350 million within three years,
likely in part through an unspecified number of job cuts, and
increase earnings per share by $1 within three years, the companies
said. Executives said most of the savings will come from reducing
corporate overhead and consolidating business units.
There is little overlap ...