Stanley Black & Decker Buys Lennox

Charles Spencer

Charles Spencer

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I hope they keep making the same quality blades. I use them on my hack saws, power hack saw, reciprocating saw, and band saw.

Interesting that they paid more than twice as much as they did for the Craftsman name.


"Stanley Black & Decker completes Lenox American saw purchase, plans to continue operating East Longmeadow plant


EAST LONGMEADOW -- Connecticut-based tool giant Stanley Black & Decker earlier this month completed its purchase of Newell Brands' tool division, which includes Lenox American Saw and its 500,000-square-foot factory here with 640 employees.

The $1.95 billion acquisition was first announced in October. The deal represents more than $700 million of revenues from brands like Lenox and Irwin hand tools, Stanley Black & Decker said in a news release.

When asked what this means for the East Longmeadow plant, Stanley was positive, but unspecific. Spokesman Tim Perra wrote in an email:

"We are pleased to welcome the East Longmeadow manufacturing facility into our family of nearly 30 U.S. manufacturing facilities. We are excited to have these employees join our team and look forward to supporting their continued growth. Currently we plan to continue operating the plant and producing all of its great products there."

The Newell deal is not the only major acquisition Stanley Black & Decker has completed recently. The company bought the Craftsman brand from Sears for $775 million in a deal announced in January. That deal also closed last week.

In the Stanley Black & Decker annual report, the company said it plans to expand U.S. manufacturing to support growth in Craftsman tool production. Stanley said it has grown U.S. tools manufacturing jobs by 40 percent over the last three years. It plans to expand over the next three years, moving from doing 40 percent of its manufacturing in the U.S. to 50 percent.

Stanley Black & Decker still makes tape measures in New Britain, Connecticut, the same city where the corporate headquarters is, according to the annual report. It already makes many of its DeWalt brand tools in the U.S., using parts sourced around the world.

The company said it is planning to upgrade to "smart factories" with the latest in robotics, manufacturing execution systems, 3-D printing, innovation labs and maker spaces. Stanley Black & Decker doesn't say where those will be.

Danaher Inc. used to manufacture some Craftsman ratchets and wrenches in Springfield before shutting down in 2005."


http://www.masslive.com/business-ne...r_closes_on_lenox_ame.html#incart_river_index
 
That's too bad. "Black and Decker" - when I hear that name, I wonder if the Lennox brand was just flushed down the terlet. I sure hope that they don't screw it up.

The business school boys and girls doing these deals rarely know or say the C words - Customers and Competition. They are focused more on the M words, margins and money. They have sorely little insight as to how you really make both.

By the way, you could sit in the conference room with them and they wouldn't have a clue as to the products and how they are really used. They will wack R&D and farm the brand.
 
Alan H,
I hope you are wrong, but I fear you are exactly right.
 
A few years back I bought a whole bunch of power hacksaw blades, I must have 50 of them here in different tooth counts. Most of them are Lennox, some are Starrett. Either way, I've got what I hope will be a lifetime supply for me, just in case the apple cart flips over.
 
When one group starts buying all the rest, nothing good will come of it.

Unless, of course, you buy their stock, instead of their tools.
 
These kind of acquisitions happen all the time, but we hear very little about them. Why don't we wait and see what the results are? For all we know, Lenox was in trouble and needed to do this to keep the brand alive. And it sounds like they are keeping the company pretty much as it is. Lenox has a good reputation, and my personal experience with the brand has been good. I see no cause for worry. In fact, a fresh infusion of cash may result in R&D that had stagnated for all we know and now they will go forward developing newer, better cutting tools. At least, as stated, the manufacturing jobs will stay, and even increase. So before we start thrashing what may be a great decision, let's see how it shakes out. Lots of companies would not exists in any form without someone coming along with a desire or need for their manufacturing capability, and the cash to make the deal happen. Of course in all fairness, some companies have been ruined by the same process, but we are just speculating at this point on the buyout.
 
Stanley owns a pretty broad swath of tool brands. The Stanley brand has degenerated over the years, but Mac (tool truck) and Proto (industrial) are quite good.
 
Still waiting to see if Stanley and Craftsman tools ever regain their former cachet.

Everything else on that list (that I recognize) has pretty much gone downhill.
 
I designed and manufactured consumer tools for over 30 years in our Black & Decker design / manufacturing centre here. I also had responsibility for doing competitive testing of all the tools of our competitors. Our goal was to be at least as good as the competitors and mostly better. Excellent value was our goal.

Needless to say I had a lot of skin in the game. I sure hope with all the acquisitions that they don't drop the ball.

David
 
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