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Sears is selling its Craftsman tool brand to Stanley Black & Decker

Sears is selling its Craftsman tool brand to Stanley Black & Decker

Sears Holdings Corp. will sell its well-known Craftsman tool brand to Stanley Black & Decker, the latest in a recent flurry of moves the retailer is making to generate cash after at least five money-losing years.

The agreement announced Thursday calls for Stanley to pay $525 million when the deal closes — expected later this year — and $250 million more after three years, the companies said. Stanley of New Britain, Conn., will pay Sears a percentage of its sales of Craftsman products for 15 years, and during that time Sears will be able to continue selling Craftsman products royalty-free.

Sears, based in Hoffman Estates, Ill., estimated the deal's value could...

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