Our Businesses

Driving Integration

We are well-practiced and rigorous in our approach to the integration of acquired assets. It is a strength that underlies our growth strategy.

In integrating Black & Decker into our global enterprise, we have realized $135 million of cost synergies in 2010, up $45 million from our original estimate due to effective execution. Overall, we now expect to exceed our initial total cost synergy target of $350 million by $75 million, to $425 million by the end of 2012.

While the Black & Decker merger has garnered much interest and attention because of its scope and scale, and because it has secured us a preeminent position in the global marketplace for hand and power tools, we continue to be very active in building out our diversified growth platforms through strategic acquisitions. Since 2002, we have invested well over three billion dollars in over 60 transactions to advance these platforms.

Our proven integration process drives significant synergy realization. Prior to closing, we finalize an integration plan for the first 100 days of the new asset, and forge consensus on that plan with both management teams. We establish integration management team rhythms and milestones on a weekly basis. Experienced integration managers are placed on each team. We keep a strong local perspective, with in-country integration teams worldwide.

On average, acquired assets have shown a post-integration improvement in operating margin of 6 percent.

Jeffrey D. Ansell

" Things have been going well for many reasons. We have excellent people, eager to learn from one another and eager to pursue the compelling cost and revenue synergies in front of us. There is a hunger for SFS and for new ways of innovating. We have always shared a pervasive commitment to the end-user. Now we also share a vision."

Jeffrey D. Ansell
Senior Vice President &
Group Executive
Construction & DIY

D. Brett Bontrager

" In integrating Black & Decker, we have been able to execute quicker and find more cost synergies than we originally modeled. This speaks to our very disciplined process and the quality of our combined teams. The internalization is essentially complete. By the end of 2010, most of all our original integration teams were deployed back into the business or to select revenue synergy projects."

D. Brett Bontrager
Senior Vice President & Group Executive
Convergent Security Solutions