Stanley Works, New Britain, Conn., has acquired Towson, Md.-based Black & Decker in a stock-purchase deal valued at $4.5 billion. The deal represents a 22.1% premium to Black & Decker shareholders, who will receive 1.275 shares of Stanley for each of their Black & Decker shares. Stanley will own 50.5% of the new company. Stanley is a leading producer of hand and mechanical tools as well as pneumatic and hydraulic tools. In 2008 Stanley had sales of $4.43 billion, with 18,225 employees. Black & Decker, which is a leader in the power-tools market, had sales of $6.09 billion in 2008
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.