Sears Holdings Corp. (Nasdaq: SHLD) agreed to sell its Craftsman tool brand to Stanley Black & Decker Inc. (NYSE: SWK) for about $900 million, marking chief executive officer Edward Lampert’s third move in the last two weeks to prop up the beleaguered retailer with fresh sources of funding.
Under terms of the deal, Stanley will pay $525 million at closing and $250 million after three years, the companies said in a statement. The buyer also will make annual payments on new Craftsman sales for 15 years. The Craftsman deal comes about three months after Stanley agreed to buy Newell Brands Inc.’s tools business for $1.95 billion. Stanley is also selling its mechanical security division to Dormakaba.