NEW YORK (AP/KXAN) — 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.
Shares of Hoffman Estates, Illinois-based Sears Holdings Corp shares rose 7.5 percent to $11.14 before the stock market open Thursday.
Macy’s Inc., Kohl’s Corp., J.C. Penney Co., Target Corp., Sears Holdings Corp. and others are all attempting to navigate a new retail landscape in which the magnetic north is Amazon.com. At stores like Macy’s, that is leading to some drastic actions. It said this week that it would cut more than 10,000 jobs, on top of plans to close 68 stores.