NEW YORK, Nov. 2 (UPI) -- Stanley Works and Black & Decker have agreed to merge, the U.S. tool and equipment makers said Monday.
The merger -- an all-stock deal the companies said was valued at $4.5 billion -- would result in two apparently complementary product lines under one roof, The New York Times reported. Stanley, a diversified industrial company, sells hand tools and construction equipment, while Black & Decker specializes in power tools.
The transaction calls for Stanley to buy Black & Decker for stock valued at about $3.5 billion and assume about $1 billion in debt, the Times said. Black & Decker shareholders would receive 1.275 common shares of Stanley for each Black & Decker share they currently own.
The boards of both companies have approved the merger, which is expected to close in 2010, with Stanley shareholders owning about 50.5 percent of the new entity and Black & Decker shareholders owning about 49.5 percent.