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Sears' Craftsman tool brand attracts bidders: Bloomberg
October 4, 2016 / 4:11 PM / a year ago

Sears' Craftsman tool brand attracts bidders: Bloomberg

(Reuters) - Sears Holdings Corp’s (SHLD.O) Craftsman tool brand has attracted bidders including Stanley Black & Decker Inc (SWK.N) and Hong Kong-based Techtronic Industries Co Ltd (0669.HK) among others, Bloomberg reported, citing people familiar with the matter.

A Sears logo is seen inside a department store in Garden City, New York, U.S., May 23, 2016. REUTERS/Shannon Stapleton

Sears’ shares jumped as much as 20.4 percent, their biggest intraday percentage gain in nearly two years, after being halted for volatility. The stock has lost more than half its value in the last 12 months.

Apex Tool Group and Sweden’s Husqvarna AB (HUSQb.ST) have also explored possible offers, Bloomberg reported.

Final bids may value the Craftsman unit at about $2 billion and are expected at the end of this month, Bloomberg said.

Sears Holdings, controlled by billionaire CEO Edward Lampert’s hedge fund, declined to comment.

The retailer said in May that it was seeking options such as partnerships or other arrangements to expand its Sears Home Services business and the unit that houses the Kenmore appliance, Craftsman tools and DieHard vehicle battery brands beyond its Sears and Kmart stores.

    Once the largest U.S. retailer, Sears has lost its standing as customers move to either online shopping or rivals such as Target Corp (TGT.N) and Wal-Mart Stores Inc (WMT.N).

    Sears, which has managed to post a profit just once in the last four years, accepted additional debt financing of $300 million from Lampert’s hedge fund in August.

    Stanley Black & Decker declined to comment, while Techtronic Industries was not immediately available for comment.

    Reporting by Jessica Kuruthukulangara and Gayathree Ganesan in Bengaluru; Editing by Shounak Dasgupta

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