Solutions for Organic Growth

Revenue Synergies

The revenue synergies related to the Stanley Black & Decker combination are extremely compelling and result from a myriad of opportunities around the globe.

The Stanley Black & Decker combination provides opportunities for substantial revenue synergy potential expected to amount to $300–400 million by 2013. These include cross-selling opportunities for products of both companies in mature markets—surprisingly, over 100 of our top 250 customers did not stock tools from both—and expanded product distribution reach for both companies.

For example, we have already begun to distribute Stanley-branded hand tools and hardware through Black & Decker's Latin American sales force and distribution channels. We are utilizing Stanley's global Industrial and Automotive Repair channels to sell additional DeWALT power tools. And we are leveraging Black & Decker's strong presence in the Specialty Tools and Fasteners Distributors Association (STAFDA) channels to sell additional Stanley hand tools.

Our increased presence and scale in emerging markets will accelerate penetration and growth. The greater scope and scale of our combined innovation process will accelerate new product development. Most importantly, increased cash flow will allow greater reinvestment in existing brands, channels, operations and growth platforms.