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Stanley Black & Decker (SWK) Acquires Craftsman for $900M
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Renowned machine tools & accessories company, Stanley Black & Decker, Inc. (SWK - Free Report) reinforced its inorganic growth trajectory by acquiring Craftsman brand from Sears Holdings Corporation (SHLD - Free Report) , with net cash of roughly $900 million. Inclusion of the premium American brand would significantly enhance the company’s product portfolio. This transaction is expected to be accretive to 2017 earnings per share (EPS) by roughly 8 cents.
Stanley Black & Decker has been growing by strategically shifting its business portfolio closer to favorable growth markets via specific inorganic and organic means. Over the last one month, shares of this Zacks Rank #3 (Hold) yielded a return of 1.42% – outperforming 1.40% gain provided by the Zacks classified Machine Tools & Related Products industry.
Inside the Headlines
Stanley Black & Decker announced the Craftsman buyout on Jan 5. Post closure of this buyout, the company gained the rights to develop, produce and sell Craftsman’s products outside Sears Hometown & Outlet Stores, and Sears Holdings’ distribution channels.
Stanley Black & Decker noted that it would make investments to improve product quality, innovation domain and Craftsman’s U.S. manufacturing base. Management expects to bolster the brand’s revenues by diligently widening its distributional channels in niche end markets.
EPS Outlook Update
After closing the Craftsman buyout, Stanley Black & Decker revised its 2017 adjusted EPS guidance to $6.74–$6.94 per share from the previous projection of $6.85–$7.05 per share.
However, the updated 2017 earnings guidance does not include the 20–25 cents per share estimated earnings to be accrued from the pending Newell Tools acquisition. The company intends to close the acquisition by the end of first-quarter 2017.
Stocks to Consider
Some better-ranked stocks within the industry are listed below:
Applied Industrial Technologies, Inc. (AIT - Free Report) carries a Zacks Rank #2 and has a positive average earnings surprise of 6.18% for the trailing four quarters.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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Stanley Black & Decker (SWK) Acquires Craftsman for $900M
Renowned machine tools & accessories company, Stanley Black & Decker, Inc. (SWK - Free Report) reinforced its inorganic growth trajectory by acquiring Craftsman brand from Sears Holdings Corporation (SHLD - Free Report) , with net cash of roughly $900 million. Inclusion of the premium American brand would significantly enhance the company’s product portfolio. This transaction is expected to be accretive to 2017 earnings per share (EPS) by roughly 8 cents.
Stanley Black & Decker has been growing by strategically shifting its business portfolio closer to favorable growth markets via specific inorganic and organic means. Over the last one month, shares of this Zacks Rank #3 (Hold) yielded a return of 1.42% – outperforming 1.40% gain provided by the Zacks classified Machine Tools & Related Products industry.
Inside the Headlines
Stanley Black & Decker announced the Craftsman buyout on Jan 5. Post closure of this buyout, the company gained the rights to develop, produce and sell Craftsman’s products outside Sears Hometown & Outlet Stores, and Sears Holdings’ distribution channels.
Stanley Black & Decker noted that it would make investments to improve product quality, innovation domain and Craftsman’s U.S. manufacturing base. Management expects to bolster the brand’s revenues by diligently widening its distributional channels in niche end markets.
EPS Outlook Update
After closing the Craftsman buyout, Stanley Black & Decker revised its 2017 adjusted EPS guidance to $6.74–$6.94 per share from the previous projection of $6.85–$7.05 per share.
However, the updated 2017 earnings guidance does not include the 20–25 cents per share estimated earnings to be accrued from the pending Newell Tools acquisition. The company intends to close the acquisition by the end of first-quarter 2017.
Stocks to Consider
Some better-ranked stocks within the industry are listed below:
ACCO Brands Corporation (ACCO - Free Report) has a positive average earnings surprise of 24.74% for the last four quarters and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Industrial Technologies, Inc. (AIT - Free Report) carries a Zacks Rank #2 and has a positive average earnings surprise of 6.18% for the trailing four quarters.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>