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11/20/2019 5:07:11 PM
Posted: 11/2/2009 11:19:44 AM EST
Say goodbye to quality DeWalt!
Link Posted: 11/2/2009 11:22:56 AM EST
Bye-bye DeWalt.
Link Posted: 11/2/2009 11:27:30 AM EST
Meh, of all the power tools I own DeWalt is already the worst.
Link Posted: 11/2/2009 11:28:45 AM EST
DeWalt went south a long time ago just like Delta and Rockwell.
Link Posted: 11/2/2009 11:32:43 AM EST
[Last Edit: 11/2/2009 11:33:22 AM EST by DreadfulHillbilly]
I said goodbye to DeWalt when I sold the crap DeWalt CMS I had.

ETA: That was 10 years ago. Went Makita and never looked back.
Link Posted: 11/2/2009 11:38:51 AM EST
Quality? DeWalt? That was good. I needed that kind of laugh today.
Link Posted: 11/2/2009 11:47:36 AM EST
I like Makita and Hitachi
Link Posted: 11/2/2009 12:14:04 PM EST
Originally Posted By DreadfulHillbilly:
I said goodbye to DeWalt when I sold the crap DeWalt junk I had.

ETA: That was 10 years ago. Went Makita Milwaukee and never looked back.


Basically this was my experience....

Link Posted: 11/2/2009 3:28:03 PM EST
Interesting...

Several years ago, B&D bought Vector Electronics (the battery charger & inverter manufacturer). Wonder if Stanley will keep 'em, or spin 'em off?
Link Posted: 11/2/2009 3:31:12 PM EST
Sigh, more consolidation, less choice.

I assume they needed to do this to get more leverage with WalMart, which both are big suppliers to.
Link Posted: 11/2/2009 6:39:29 PM EST
DeWalt has been Black & Decker's "industrial" line in disguise since they came out with portable power tools. DeWalt was real when they made cast iron tools. You can't possibly say they're NOW going to slide down the hill.

B&D also bought Porter Cable a while back. I've seen some odd things come out of that merger since.

Bottom line in tool buying is.............whatever tool you're looking for............there is a manufacturer that makes the best of that type of tool. If you want the best, buy that brand of that tool. You cannot stick with one line if you're looking for the best quality tools made. Mix and match is the way to go. There isn't a manufacturer out there that can say "we make the best everything".
Link Posted: 11/2/2009 6:40:51 PM EST
[Last Edit: 11/2/2009 6:48:20 PM EST by flyfishnepa]


so what would happen if i bought a bunch of stanley or B&D stock before they announced the buyout?


Link Posted: 11/2/2009 6:48:22 PM EST
Ive built, finished, and done a lot of remodel jobs with the DeWalt tools I have, other than the batteries the tools have outlasted my expectations. I bought them back in 02 I think. I mean all of it, the hammerdrill, the compact one, even the jigsaw and cordless shop vac.
Link Posted: 11/2/2009 6:56:15 PM EST
[Last Edit: 11/2/2009 6:56:45 PM EST by gonzo_beyondo]

Originally Posted By I_M_2_SANE:
DeWalt has been Black & Decker's "industrial" line in disguise since they came out with portable power tools. DeWalt was real when they made cast iron tools. You can't possibly say they're NOW going to slide down the hill.

B&D also bought Porter Cable a while back. I've seen some odd things come out of that merger since.

Bottom line in tool buying is.............whatever tool you're looking for............there is a manufacturer that makes the best of that type of tool. If you want the best, buy that brand of that tool. You cannot stick with one line if you're looking for the best quality tools made. Mix and match is the way to go. There isn't a manufacturer out there that can say "we make the best everything".

Yeah, but if you're a contractor, using cordless...
battery commonality is a big factor, as is battery replacement.

For the weekend warrior Joe Homeowner, having 6 different chargers is much less of an issue.
I agree with you that certain MFRs are good at certain things, but sometimes compromise is necessary.

Another factor are the guys new to trades who try to realize the cost savings of buying sets.

IMO DeWalt became B&D quality years ago.

Link Posted: 11/2/2009 6:56:31 PM EST
Stanley Works to buy Black & Decker for $3.46 bln
Mon Nov 2, 2009 7:18pm EST

* Deal represents 22 pct premium to Black & Decker holders

* Deal to add about $1/shr to earnings by third year

* New company to be called Stanley Black & Decker

* Black & Decker shares up 18 pct

* Stanley Works up 4.1 pct (Adds details about brands, advisors)

By Michael Erman and Bhaswati Mukhopadhyay

NEW YORK/BANGALORE, Nov 2 (Reuters) - Stanley Works (SWK.N) struck a deal to buy rival Black & Decker Corp (BDK.N) for $3.46 billion in stock, combining a top hand tool maker and power tool maker to benefit from higher margins and cost savings.

The companies said the driving motivation of the deal is the $350 million in annualized cost savings as well as the improved finances of the more diversified company.

"Our lines complement each other," Black & Decker Chief Executive Nolan Archibald said in an interview. "From a product point of view and a geographic point of view we have an opportunity of putting these two organizations together and coming up with significant cost savings."

Black & Decker shareholders will receive 1.275 Stanley shares –– about $57.56 at Monday's close –– for each Black & Decker share they own, representing a premium of 22 percent over Black & Decker's Monday close of $47.34. Stanley shareholders will own about 50.5 percent of the combined company, with Black & Decker shareholders owning the rest.

Stanley Chief Executive Officer John Lundgren said that cost savings would come from business unit and regional consolidation, corporate overhead cuts, and changes to manufacturing, distribution and purchasing practices.

He said job cuts would be modest.

"Certainly it will be less than ten percent –– this is nothing draconian," Lundgren said in an interview.


The CEOs said they do not expect antitrust problems. While the two companies are both top tool makers, Black & Decker is focused on power tools while Stanley Works is a top hand tool maker.

Shares of Black & Decker, whose brands include its namesake line, DeWalt, Kwikset and Price Pfister, gained 18 percent in after-hours trading, while Stanley Works rose 4.1 percent. Stanley Works brands include the Stanley line, Bostitch, Proto, and Mac Tools.

WELL-POSITIONED AHEAD OF RECOVERY

Brian Sozzi, an analyst at Wall Street Strategies, said the deal makes strong sense.

"A deal would help them get positioned ahead of the recovery in housing and the ultimate rebound in commodities," Sozzi said.

The deal is expected to add about $1 per share to the earnings of the combined company, Stanley Black & Decker, by the third year after closing.

The companies also expect about $1 billion in free cash flow from the combined businesses by the end of the third year.

"With a billion dollars in cash flow, our combined business development team and a very full acquisition pipeline gives us the opportunity to continue to build the growth platforms that are out there," Lundgren said.

He said growth areas include security, engineered fastening, infrastructure and **health care**.

James Lucas, an analyst at Janney Montgomery Scott, said that Stanley has recently developed into a much stronger operating company than in years past and that expertise could create value at the Black & Decker brands as the companies move forward.

Stanley Works' Lundgren will be CEO of the combined company, while Black & Decker's Archibald will be chairman for three years.

Deutsche Bank and Goldman Sachs & Co. acted as Stanleys financial advisors and JP Morgan advised Black & Decker. (Editing by Anil D'Silva, Leslie Gevirtz, Gunna Dickson and Carol Bishopric)
Link Posted: 11/2/2009 6:58:22 PM EST
WSJ Blogs
Deal Journal

NOVEMBER 2, 2009, 5:43 PM ET
Black & Decker’s Power Tool: Cold Hard Cash
By Michael Corkery

What drove Stanley Work’s $4.5 billion acquisition of Black & Decker?

It’s possible that Stanley wanted to scoop up Black & Decker, the brand name tool company, because its sees some hope on the horizon for buzz saws and drills as the housing market improves.

But even with home sales starting to stabilize, a full recovery could be years away. With record amounts of excessive housing supply, home construction and the remodeling activity — which are at the core of Black & Decker’s sales — are likely to remain depressed for the foreseeable future.

The most attractive asset in Black & Decker’s tool box may not be the tools, but the company’s cash supply.

The company grew its cash supply to $800 million in the third quarter, up $564 million from the previous quarter, Deutsche Bank analyst Nishu Sood said in a recent research note.

As the WSJ pointed out today, U.S companies are hoarding the highest levels of cash in past 40 years, to protect against another leg down in the economy. Stanley Works may be able to increase its own cash cushion as it rides out the uncertain times.

The combined balance sheets of the two companies will help them weather to storm until a housing recovery can take root. A similar cash-hoarding strategy prompted home builders Pulte Homes Inc. and Centex Corp. to combine forces in April.

While the near term outlook is uncertain, the long term prospects for remodeling are strong. Harvard’s Joint Center for Housing Studies estimates that average spending on the do-it-yourself home improvement – which is at the core of Black & Decker’s business — will increase to $3,100 in 2015 from $2,500 in 2005. (Harvard adjusts the number for inflation).

This may be a do-it-yourself deal, but the companies got some help from bankers. Deutsche Bank and Goldman advised Stanley and JP Morgan advised Black & Decker.
Link Posted: 11/2/2009 7:01:08 PM EST
Finally, the Koreans and the Chinese unite!
Link Posted: 11/2/2009 7:33:03 PM EST
Stanley owns MAC tools as well dont they?
Link Posted: 11/2/2009 7:37:22 PM EST
Originally Posted By jab:
Stanley owns MAC tools as well dont they?


Guess you don't bother to read any of the posts, do you.

Link Posted: 11/2/2009 7:45:44 PM EST
Bosch bitches. Bosch.
Link Posted: 11/2/2009 7:50:58 PM EST
Originally Posted By KA3B:
Originally Posted By jab:
Stanley owns MAC tools as well dont they?


Guess you don't bother to read any of the posts, do you.


Dont get yourself all spooled up, my bad.
Link Posted: 11/3/2009 5:45:44 AM EST
B&D had to do something after destroying their name selling crap.

They purchased DeWalt, and promptly threw away all the radial arm saw business.

They then proceeded to turn DeWalt into junk.


Now they have purchased Porter-Cable & Delta when Pentair bailed.

These brands came back when Rockwell sold them to Pentair.
The Rockwell Unisaw continued on as the Delta Unisaw.
Porter-Cable re-emerged also.

Porter-Cable had already started to produce a 'weekend warrior' line at lower price than the solid tools they had been making.
It got to be almost amusing to see the price spread.

If B&D (and now Stanley Works) follow form they will savage these brands and look for another name to hide behind.

Milwaukee seems to be holding up well, and Skill if you buy the pro line (like the Mag 77 saw).

Bosch seems to have a tight hold on the jig saw market (Porter-Cable used to have a few decent ones).




Link Posted: 11/3/2009 5:48:56 AM EST
Originally Posted By Schadenfreuda:
Bosch bitches. Bosch.


Roger that


Seriously, I used their 24V kit to practically build my house with (well, that and a Paslode gas nailer), and they are g2g in my book.
Link Posted: 11/3/2009 5:49:52 AM EST
Makita FTW!
Link Posted: 11/3/2009 6:00:00 AM EST
Originally Posted By beltfed74:
Ive built, finished, and done a lot of remodel jobs with the DeWalt tools I have, other than the batteries the tools have outlasted my expectations. I bought them back in 02 I think. I mean all of it, the hammerdrill, the compact one, even the jigsaw and cordless shop vac.


Agreed, other than a few battery problems, I've been very happy with my large collection of DeWalts (two routers, recip saw, circ saw, two battery drills, elec drill, biscuit cutter, angle grinder, two sanders, and a CMS). The chuck on my 12V screwdriver bit the dust and I was able to order a new one off the internet and get it fixed. Couldn't do that with a B&D, Skil, or Ryobi which are basically throw-aways. I also own Makita, Bosch, Ridgid, and P-C; but at least 50% of my hand tools are DeWalt.

Link Posted: 11/3/2009 5:22:27 PM EST
Health care is huge for tool makers. It is good leverage for economic cycles.

Engineered fastening is the wave of the future as metals advancement continues. Companies who miss this boat are going to miss big.
Link Posted: 11/3/2009 5:38:26 PM EST
Originally Posted By brickeyee:
B&D had to do something after destroying their name selling crap.
They purchased DeWalt, and promptly threw away all the radial arm saw business.


Black and Decker bought DeWalt in 1960.
Black and Decker didn't sell the radial arm saw portion of the company until 1989.
I guess 29 years is "promptly" in your world.

Link Posted: 11/5/2009 4:58:06 AM EST
I've used DeWalts for years. Going on 20, now. I must say, they have been great. Started with a 12v cordless drill, that was used to build 1/2 my house. Then upgraded to a 18v hammer drill. It's been good too. I'm not a contractor, and I'm not your average weekend warrior either, but my family has built 3 houses, several workshops, and a few garage/carports for family members, and most of them with DeWalt tools. I think their cordless saws are under powered, but I understand why. The batteries don't last more than a few cuts otherwise. Good only for finishing work.

I have a Hitachi compound miter saw. The motor blew on me after about 4 years. Won't be going back to them anytime soon. And I have a Delta 12 bandsaw. Good saw, but it eats tires, and factory replacements are hard to find.

Tools are a very personal thing, sort of like your favorite beverage or car, and I have had good luck with DeWalt. I hope this buy out won't kill that line.

YMMV, IMHO
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