Sears to sell Craftsman tool brand to Stanley Black & Decker - WFSB 3 Connecticut

Sears to sell Craftsman tool brand to Stanley Black & Decker

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Sears will sell Craftsman tool brand to Stanley Black & Decker. (Source: CNN) Sears will sell Craftsman tool brand to Stanley Black & Decker. (Source: CNN)
NEW BRITAIN, CT (WFSB/AP) -

Sears is selling its well-known Craftsman brand to Stanley Black & Decker Inc., which plans to grow the tool brand by selling its products at more stores.

Currently, only 10 percent of Craftsman products are sold outside of Sears-owned department stores. Sears will continue to sell Craftsman products at its stores, including Kmart and Sears Hometown.

Stanley will pay about $900 million for Craftsman, which includes $525 million when the deal closes this year, $250 million after three years and a percentage of sales for 15 years. After 15 years, Sears will start paying Stanley 3 percent of the Craftsman sales it makes.

Many locals said they are hoping that the deal could mean good things for the city of New Britain, where Stanley Black and Decker is based.

Executives at Stanley Black & Decker said they plan to invest in Craftsman and rapidly increase sales in stores and online.

More manufacturing could mean more jobs nationwide, but some are still skeptical.

"There's so many places that say they're going to bring jobs in and there's no way of really tracking it,” said Steve Wantek, of Berlin.

“I think that would be a good thing for the tool industry. I mean Stanley is all over the place so it's a big name, lots of people carry their tools,” said Doug Nash, of Farmington.

Shares of Hoffman Estates, Illinois-based Sears Holdings Corp shares rose 7.5 percent to $11.14 before the stock market open Thursday.

Copyright 2016 WFSB (Meredith Corporation). The Associated Press contributed to this report. All rights reserved.