NEW BRITAIN-Stanley Black & Decker has announced Loweâ€™s will start carrying its Craftsman brand, after buying the tool company earlier this year from Sears Holdings.
â€śWe have been more than impressed with the level of commitment and support afforded by Loweâ€™s for the Craftsman brand,â€ť Jeffrey Ansell, president of Stanley Black & Deckerâ€™s global tools and storage division said on a call with analysts and investors Tuesday morning.
He added, â€śWe continue working with other channel partners and continue to provide them with successful programs to facilitate their growth as well.â€ť
In March, Stanley Black & Decker, which is headquarted in New Britain, finalized the purchase of the Craftsman Brand for $900 million in cash.
The terms of the deal included that Stanley will make annual payments to Sears Holdings of between 2.5 percent and 3.5 percent on new Stanley Black & Decker sales of Craftsman products through 15 years.
During that time Sears Holdings will be able to continue offering Craftsman-branded products sourced from existing suppliers through its current retail channels royalty-free, then 3 percent thereafter.
Before the purchase, Craftsman was exclusively operated by Sears Holdings with approximately 10 percent of Craftsman-branded products sold outside of Sears Holding, including Ace Hardware and Kmart locations in Connecticut.
Stanley will be able to significantly increase Craftsman sales by being able to develop, manufacture and sell Craftsman branded products in non-Sears Holdings channels.
â€śCraftsman is a legendary, American brand with tremendous consumer awareness built on a legacy of producing quality products at a great value,â€ť said James Loree, President and CEO of Stanley Black & Decker in a statement when the purchase was first announced. â€śWe intend to invest in the brand and rapidly increase sales through those new channels, including retail, industrial, mobile and online.â€ť
The company expects the sale of Craftsman branded products to contribute approximately $100 million of average annual revenue growth for approximately the next 10 years.
To keep up with the future growth of Craftsman, Stanley is also planning to expand its manufacturing footprint, which will add more jobs.
Lowes will begin selling Craftsman products in the second half of 2018. No other information about the deal has been released.
Nearby Loweâ€™s locations include 3270 Berlin Turnpike in Newington; 246 New Britain Ave. in Plainville; and 500 Executive Blvd. in Southington.
Angie DeRosa can be reached at 860-801-5063 or email@example.com