>SWK acquisition of BDK won’t hurt HD or LOW

November 4, 2009

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Craig Johnson, Roulston Research’s Consumer community chair believes that Stanley Works’ $4.5 billion acquisition of Black & Decker Corp. shouldn’t hurt results at Home Depot or Lowe’s. He does not see this transaction as a negative for either of the retailers.

He believes HD and LOW should benefit from a tool-maker that is financially and operationally stronger as a merged entity. By combining their sales forces and eliminating duplicative distribution systems, Stanley and Black & Decker should be able to get their products into stores more efficiently. In addition, Stanley and Black & Decker’s products are mostly complementary rather than competitive.

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