In the past I’ve scratched my head over questions like: Why not allow the brands with the strongest market recognition and brand loyalty survive?īut looking back on past foibles (IMO) this may not happen. There is an analogy here and I think we may be standing on the cusp of another sorting out. No more Pontiac, Oldsmobile, Saturn, Hummer, Mercury, Desoto and Plymouth – to name a few brands that got sorted out. As things changed – I believe that they found out that too many brands just confused the buyers – and one brand cannibalized sales from another. Then they had to compete with good cars from Europe and the constantly improving cars from Japan. We’ll have to look back at this in a few years, to see how this deal changes anything for any of the brands involved.Īt one time the Detroit car manufacturers had lots of brands and independent dealerships and they thought that more brands meant more sales overall. It’ll cost a bunch more money to integrated everything into Stanley Black & Decker branding, but likely a small fraction compared to the $1.95 billion for the acquisition. Newell Tools operates a global manufacturing footprint, maintains strong distribution relationships in its served markets, and has more than 2,500 employees around the world.įrom a dollars and cents perspective, $760 million in 12 month revenue might lead to a positive return on the investment in a few years. With LTM revenues of approximately $760 million, and low to mid-single digit average sales growth since 2011, Newell Tools is well-positioned to enhance the offerings and broaden the reach of Stanley Black & Decker’s global tools and storage business. Newell Tools is an industry leader with an array of strong brands and products that are highly complementary to Stanley Black & Decker. This is what Stanley Black & Decker has said about the acquisition: Let’s not forget that there are other regions and markets, which could have contributed greatly to the purchasing decision. In addition to depriving other brands, such as TTI, the opportunity to benefit and grow from Irwin and Lenox, perhaps Stanley Black & Decker is after a wider presence at Lowes. It wasn’t too long ago that Bostitch hand tools were prominently featured at Lowes.īut to be fair, this is focusing in USA market presence. Many new Irwin tools have popped up at Lowes in recent months, a seeming push towards full spectrum offerings. Stanley Black & Decker already offers hammers, adjustable wrenches, pliers, and power tool accessories. Tools such as Lenox’s copper tubing cutters, and Irwin’s pipe wrenches, plus tooling such as Irwin and Hanson’s thread-cutting tap and die sets. I saw too much overlap in Stanley Black & Decker’s portfolio, although Irwin and Lenox do manufacturer some tools not offered by Stanley Black & Decker brands, at least not those competing in the same spaces in the USA. When we discussed the news last week, about Newell putting the brands up for sale, I wrote about how I thought TTI was going to be the most interested party. A big part of the deal, if you ask me, was depriving other brands of the opportunity to buy Irwin and Lenox.
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