Sears to sell Craftsman tool brand to Stanley Black & Decker

Markets Associated Press

FILE - A May 18, 2011 file photo shows an assortment of Craftsman wrenches at a Sears store in Bethel Park, Pa. Sears is selling its well-known Craftsman brand to Stanley Black & Decker Inc., which plans to grow the tool brand by selling its products ... at more stores. Shares of Hoffman Estates, Illinois-based Sears Holdings Corp shares rose 7.5 percent to $11.14 before the stock market open Thursday, Jan. 5, 2017. (AP Photo/Gene J. Puskar, File) (The Associated Press)

Sears is selling its well-known Craftsman brand to Stanley Black & Decker Inc., which plans to grow the tool brand by selling its products at more stores.

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Currently, only 10 percent of Craftsman products are sold outside of Sears-owned department stores. Sears will continue to sell Craftsman products at its stores, including Kmart and Sears Hometown.

Stanley will pay about $900 million for Craftsman, which includes $525 million when the deal closes this year, $250 million after three years and a percentage of sales for 15 years. After 15 years, Sears will start paying Stanley 3 percent of the Craftsman sales it makes.

Shares of Hoffman Estates, Illinois-based Sears Holdings Corp shares rose 7.5 percent to $11.14 before the stock market open Thursday.