CHICAGO — Sears Holdings will sell its well-known Craftsman tools brand to Stanley Black & Decker, the latest in a recent flurry of moves the retailer is making to generate cash after at least five money-losing years.
The agreement announced Thursday calls for Stanley to pay $525 million when the deal closes — expected later this year — and another $250 million after three years, the companies said. New Britain, Conn.-based Stanley will pay Sears a percentage of its new sales of Craftsman products for 15 years, and during that time, Sears will be able to continue selling Craftsman products royalty-free.
Sears, headquartered in suburban Chicago, estimated the deal’s value could top $1 billion.
Separately Thursday, Sears said it’s trying to raise another $1 billion by selling off real estate. On Wednesday, affiliates of the hedge fund managed by Sears’ chairman, CEO and biggest investor, Edward Lampert, lent Sears up to $500 million to fund operations while it negotiates those sales.
Sears announced in May that it was looking for ways to wring more cash from some of its best-known brands — Craftsman, Kenmore and DieHard.