Stanley Black & Decker Shares Jump 5% Premarket After It Closes Craftsman Deal With Sears
Stanley Black & Decker shares surged more than 5% in premarket trade Thursday, after the company closed its deal to buy the Craftsman brand from Sears Holding Corp. for about $900 million in cash. The deal, first announced on Jan. 5, gives the company the right to develop and sell Craftsman products outside of Sears stores. Stanley Black & Decker said it expects the deal to immediately boost earnings, adding about 8 cents to share to 2017 earnings per share, excluding about $20 million of costs. The company is now expecting 2017 adjusted EPS of $6.74 to $6.94, compared with a FactSet consensus of $6.95. Shares have gained about 30% in the last 12 months, while the S&P 500 has gained 19%.
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