Black & Decker 2010 Annual Report Download - page 39

• The Company acquired Stanley Solutions de Sécurité (“SSDS”), formerly known as ADT France, on
March 9, 2010 for $8 million, net of cash acquired. SSDS had approximately $175 million in 2009
sales. The acquisition is an indication of the Company’s continuing strategic intent to expand the
security segment internationally and is highly complementary to the Company’s existing French security
platform, Générale de Protection, acquired in 2008. Aside from restructuring charges, SSDS was
neutral to earnings in 2010 as the majority of the integration benefits will begin to occur in early 2011.
• In November 2010 the Company purchased 70% of the outstanding shares of GMT for $44 million,
net of cash acquired. GMT is a leading commercial hardware manufacturer and distributor in China.
The acquisition of GMT provides the Company with a low cost manufacturing source and also serves
as a platform for international commercial hardware expansion. GMT had approximately $40 million
in 2009 sales.
• The Company acquired InfoLogix, Inc. in January 2011 for $61 million, net of cash acquired.
Infologix is a leading provider of enterprise mobility solutions for the healthcare and commercial
industries and will add an established provider of mobile workstations and asset tracking solutions to
Stanley’s existing Healthcare Solutions growth platform. Infologix had $87 million sales in 2009.
The additions of the HHI business and the acquisitions discussed above complement the existing Security
segment product offerings, increase its scale and strengthen the value proposition offered to customers as
industry dynamics favor multi-solution providers that offer “one-stop shopping”.
Drive Further Profitable Growth in Branded Tools and Storage
While diversifying the business portfolio through expansion in the Company’s specified growth platforms is
important, management recognizes that the branded tool and storage product offerings in the CDIY and
Industrial segment businesses are important foundations of the Company that provide strong cash flow
generation and growth prospects. Management is committed to growing these businesses through innovative
product development, as evidenced by the success of the 12-volt max subcompact lithium ion cordless power
tool products in the CDIY segment and the EXPERT tool product launch in the Industrial segment, brand
support, an increased weighting in emerging markets, and relentless focus on global cost competitiveness to
foster vitality over the long term. Acquisition-related growth will also be pursued where appropriate. The
Merger is clearly an indicator of the Company’s commitment to this strategic objective.
Continue to Invest in the Stanley Black & Decker Brands
The Company has a strong portfolio of brands associated with high-quality products including Stanley»,
Black & Decker», DeWalt», Facom»,Mac», Proto», Vidmar», Bostitch»and FatMax». The Stanley»and
Black & Decker», brands are recognized as two of the world’s great brands and are one of the Company’s
most valuable assets. Brand support spending has averaged approximately $21 million annually since 2007, up
from the preceding years. This sustained brand support has yielded a steady improvement across the spectrum
of legacy Stanley brand awareness measures, notably a climb in unaided Stanley hand tool brand awareness
from 27% in 2005 to 48% in 2010. Stanley and DeWalt had prominent signage at 12 major league baseball
stadiums throughout 2010 and is continuing its program in the coming season. The Company is also
maintaining long-standing NASCAR racing sponsorships which will entail brand exposure over 36 race
weekends in 2011. The Company is in year 3 of a ten year alliance agreement with the Walt Disney World
Resort»whereby Stanley»logos are displayed on construction walls throughout the theme parks and Stanley»,
Mac», Proto», and Vidmar»brand logos and/or products are featured in various attractions where they will be
seen by millions of visitors each year. Additionally, Stanley is “The Official Tool Provider of the Walt Disney
World Resort».” In 2009 the Company also began advertising in the English Premier League which is the
number one soccer league in the world, watched weekly by 650 million people around the world. From
2011-2012, the Company will increase its advertising to approximately 195 televised matches. The company
has added brand development programs in Moto GP, the world’s premiere motorcycle racing series and 60
televised Professional Bull Riders events in the US and Brazil. The Company will continue to allocate its
brand and advertising spend wisely generating more than 25 billion brand impressions annually.
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