"Rather than buying Craftsman outright, Stanley Black & Decker is buying the rights to use the Craftsman brand outside of Sears-affiliated sales channels. Meanwhile, Sears Holdings will be able to continue producing and selling its own line of Craftsman-branded products in Sears and Kmart stores. Sears will start paying royalties to Stanley Black & Decker for use of the Craftsman brand after 15 years.
Since non-Sears retail outlets account for just 10% of Craftsman sales right now, Stanley Black & Decker is essentially paying for the growth potential associated with making Craftsman products more widely available. The deal was deliberately structured this way to protect Stanley Black & Decker from Sears' ongoing decline."
I can't say I'm surprised because the writing has been on the wall for Sears Holdings for quite awhile. For example, last Christmas Kmart made it impossible to buy a few items I was interested in both in local store and on line. They were little extras so it wasn't a loss that I didn't buy them. Although I know Husband had to jump through a quite few hoops to buy the Craftsman orbital sander I wanted for Christmas. Originally he wanted to give it to me for my birthday but couldn't find it.
I hugged my Craftsman sander like an eight year old girl getting an American Girl doll for Christmas.
