Sears Holdings Corporation has sold its private label Craftsman brand to Stanley Black + Decker.
Black + Decker will pay Sears Holdings $525 million at closing, $250 million at end of year three and will make annual royalty payments on new Craftsman sales through year 15.
Sears Holdings will continue to source and sell Craftsman-branded products in all its own retail channels under a perpetual license agreement.
Black + Decker will own the rights to develop, manufacture and sell Craftsman-branded products in non-Sears Holdings retail, industrial and online sales channels across the U.S. and in other countries.
Additionally, Sears Holdings will continue to offer Craftsman-branded products, sourced from existing suppliers, through its current retail channels via a perpetual license from Black + Decker, which will be royalty free for the first 15 years after closing.