Sears's Craftsman said to draw interest from Black & Decker, TTI
Sears Holdings Corp.'s sale of its Craftsman tool business has attracted bidders including Stanley Black & Decker Inc. and Hong Kong's Techtronic Industries Co., people with knowledge of the matter said.
Other companies such as U.S.-based Apex Tool Group and Sweden's Husqvarna have also explored possible offers for Craftsman, according to the people. Final bids, which may value the brand at about $2 billion, are due at the end of the month, said the people, who asked not to be identified because the information is private.
There's no guarantee that the potential suitors will decide to proceed with a formal proposal, the people said.
Hoffman Estates-based Sears announced plans in May to consider options for its Craftsman, Kenmore and DieHard brands as well as its Sears Home Services repair business, signaling the unprofitable retailer may again be turning to asset sales amid continued losses. The company said at the time it hired Citigroup and LionTree Advisors and would "aggressively" evaluate all alternatives for the businesses.
Stanley Black & Decker, which traces its roots to 1843, calls itself the world's largest tools and storage company. It employs more than 52,000 people in 50 countries, according to its website.
Shares of Techtronic Industries have fallen 4.4 percent in Hong Kong trading this year, giving it a market value of about $7.1 billion. The company, known as TTI, makes Dirt Devil and Hoover vacuum cleaners as well as Milwaukee power tools, Stiletto hammers and Homelite chain saws.
Representatives for Sears, TTI, Apex Tool of Sparks, Maryland, and Husqvarna declined to comment. A representative for Stanley Black & Decker, based in New Britain, Connecticut, didn't respond to requests for comment.
The brands being reviewed by Sears - Craftsman tools, Kenmore appliances, and DieHard auto batteries - are staples found in many American households and key assets inside the company. Yet their sales have been slipping, even after Sears hired a licensing agent in 2012 to offer them outside of Sears and Kmart stores.
With Sears stores showing little sign of a revival, Chief Executive Officer Edward Lampert has been considering selling off parts of the company to bring in cash. Lampert - a hedge fund manager who's also the retailer's chairman and largest shareholder - already has hived off the Sears Hometown and Outlet Stores business and Lands' End clothing brand, while also selling off store locations and moving others into a real estate investment trust.