NEW YORK (CBSMiami/AP) — Sears is selling off one of its iconic brands.READ MORE: Man Held Without Bond In Killing Of Baby, Babysitter In Coral Springs
The Illinois based Sears Holding Corp. has made a deal to sell its Craftsman tool line to Stanley Black & Decker Inc.
Currently, only 10 percent of Craftsman products are sold outside of Sears-owned department stores. Sears will continue to sell Craftsman products at its stores, including Kmart and Sears Hometown.
Stanley plans to grow the brand by selling Craftsman tools in more stores outside of Sears.
Sears first took control of the Craftsman brand in 1927 when it bought the trademark for $500.READ MORE: Report: South Florida Counties Have High COVID Levels, Despite CDC Numbers
Sears has been losing money for years as its revenue fell. The company also announced plans Thursday to close 150 stores, about 10 percent of its total 1,500 stores. And last week, the company said it received a credit facility for up to as much as $500 million to provide it with cash as it sells assets.
Stanley will pay Sears about $900 million for Craftsman, which includes $525 million when the deal closes this year, $250 million after three years and a percentage of sales for 15 years. After 15 years, Sears will start paying Stanley 3 percent of the Craftsman sales it makes.
Stanley, based in New Britain, Connecticut, makes and sells tools under several brands, including Stanley, DeWalt and Black & Decker.
Shares of Sears Holdings Corp. shares rose 59 cents, or 5.7 percent, to $10.95 in morning trading Thursday. Stanley shares rose $2.69, or 2.3 percent, to $119.17.MORE NEWS: COVID-19 Testing Site Finder
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