January 5, 2017 / 12:49 PM / 7 months ago

BRIEF-Stanley Black & Decker to purchase Craftsman brand from Sears Holdings

Jan 5 (Reuters) - Sears Holdings Corp :

* Stanley Black & Decker reaches agreement to purchase craftsman brand from sears holdings

* Sears Holdings Corp - agreement consists of $525 million cash payment at closing

* EPS accretion to Stanley Black & Decker, excluding charges, of approximately $0.10-$0.15 per share in year one

* Sears Holdings Corp - agreement consists of payment of $250 million at end of year three

* Existing sales of Craftsman products outside Sears Holdings and Sears Hometown distribution channels, which will be assumed immediately

* Sears Holdings Corp -EPS accretion to Stanley Black & Decker increasing to about $0.35-$0.45 by year five and to approximately $0.70-$0.80 by year ten

* Sears Holdings Corp - agreement consists of annual payments to co of between 2.5% and 3.5% on new Stanley Black & Decker sales of Craftsman products

* Transaction was approved by boards of directors of both companies

* Sears Holdings Corp - net present value of all cash payments in deal is approximately $900 million

* Sears Holdings Corp - license granted to Sears Holdings will be royalty-free for 15 years, then 3% thereafter. Source text for Eikon: Further company coverage:

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