Black & Decker and Stanley Works to merge - local impact

November 2, 4:31 PMBaltimore Financial ExaminerTom Taylor, CPA/PFS

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Black and Decker and Stanley works agree to merge in a transaction valued at $4.5 billion.  Black & Decker shareholders will receive a fixed ratio of 1.275 shares of Stanley common stock for each share of Black & Decker common stock they own, representing an implied premium of 22.1% to Black & Decker's share price as of Friday, October 30, 2009.  Initially, the stock market likes this deal as B&D stock is up 19% in after hours trading.

Initally the biggest question is what will happen to the Towson headquarters of Black & Decker.  While the world headquarters for Black and Decker is located in Towson, MD the new world headquarters of the combined company will be located in Connecticut.  The greatest presence in Towson for Black & Decker is the Power Tools division and according to the press release it appears the Power Tools division will remain at the Towson, MD location.  Phew.  That's huge for the local Baltimore and Baltimore County economy.  Stay tuned to more updates.

Here's a link to the press release from the Wall Street Journal.

Tom Taylor, CPA is a fee-only, independent Financial Planner and Certified Public Accountant and can be contacted at Chesapeake Financial Advisors or Taylor & Company in Towson, MD.  He is a member of NAPFA and the MACPA and AICPA.