Stanley Works to sell CST/berger to Bosch
Tool giant Stanley Works has announced two deals to help limit its exposure to the U.S. housing market, including a deal to sell its CST/berger laser measuring business to Robert Bosch Tool for $205 million.
The company also announced plans to buy Sonitrol, the security monitoring company, for $275 million from an investment group comprised of three firms: Carlyle Group, Wachovia Capital Partners and Spire Capital Partners.
“These two transactions are important steps toward advancing our growth strategy and repositioning the company to be less dependent on construction and DIY markets,” said John Lundgren, chairman and CEO of Stanley Works. “We continue to be strongly committed to shifting the company’s portfolio into higher-growth, higher-return areas such as electronic security. The addition of Sonitrol, with its iconic brand and strong franchisee and direct sales network, expands the scale of our existing North American monitoring operation.”
In addition to the two transactions, Stanley said it is “developing plans to exit several small, non-strategic product lines during the remainder of the year with associated revenues of approximately $60 million.”
Details of those smaller product lines were not announced and have yet to be finalized, the company said.
Pier 1 makes bid for Cost Plus
Cost Plus, the parent of home decor retailer World Market, has rejected an unsolicited takeover offer by Ft. Worth, Texas-based home decor chain Pier 1 Imports.
In a statement, Cost Plus executives called the Pier 1 proposal “highly conditional” and “not in the best interests of Cost Plus and its shareholders.”
Pier 1 offered about $88 million for the company, which sells casual home furnishings, decor, housewares and other home items similar to the assortment found in Pier 1 stores.
“We believe that the combination of Pier 1 Imports and Cost Plus is extremely compelling and would create significant value for the stakeholders of both companies,” said Alex Smith, president and CEO of Pier 1. “Given our similar customer bases and broadly similar business models, but distinct market positions, we believe Cost Plus is an excellent fit with Pier 1 Imports.”
Pier 1 saw several quarters of losses, but swung back to profitability in the first quarter. Cost Plus recorded losses of $32 million in the first quarter.
Correction: Tractor Supply Comps
A June 12 article in breaking news incorrectly described Tractor Supply’s comparable-store sales. The company posted a 3.4 percent increase in 2007 and a 6.5 percent decline in the first quarter of the current year.