Adding to The Toolbox

Black & Decker being acquired by Stanley for $4.5B

Power tool maker Black & Decker Corp. will be acquired by hand tool maker Stanley Works in an all-stock merger valued at $4.5 billion.

Towson-based Black & Decker and New Britain, Conn-based Stanley says the merger will create and $8.4 billion global tool company.

Under terms of the acquisition, Black & Decker shareholders will get 1.275 shares of Stanley for every one share of Black & Decker they own, a 22 premium for Black & Decker’s share price.

The boards of directors and both companies have approved the merger. The two expect the merger to be completed in the first half of 2010. Six of Black & Decker’s current board members will also join the Stanley board.

The new company will be called Stanley Black & Decker, and will be headquartered in Connecticut, although it will retain a presence in Maryland, the companies said in a statement.

Black & Decker has been an acquisition target as far back as 2004, when it was mentioned as a company a Chinese buyer might want for its U.S. sales force and access to U.S. markets.