MERGER AND ACQUISITIONS

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

MERGER AND ACQUISITIONS

ACQUISITIONS

PENDING ACQUISITIONS

On January 5, 2017, the Company announced that it had entered into a definitive agreement to purchase the Craftsman brand from Sears Holdings, which provides the Company with the rights to develop, manufacture and sell Craftsman-branded products in non-Sears Holdings channels. The agreement consists of a $525 million cash payment at closing, $250 million at the end of year three, and future payments to Sears Holdings of between 2.5% and 3.5% on new Stanley Black & Decker sales of Craftsman products through year 15. After year 15, Sears Holdings will have a perpetual license to continue selling in Sears-related channels in exchange for a 3% royalty payment to the Company. The Craftsman results will be consolidated into the Company's Tools & Storage segment. The transaction, which is expected to be accounted for as a business combination, is expected to close during 2017 subject to customary closing conditions, including regulatory approvals.

On October 12, 2016, the Company announced that it had entered into a definitive agreement to acquire the Tools business of Newell Brands ("Newell Tools"), which includes the industrial cutting, hand tool and power tool accessory brands Irwin® and Lenox®, for $1.95 billion in cash. Newell Tools will be consolidated into the Tools & Storage segment and will enhance the Company’s position within the global tools & storage industry and broaden its product offerings and solutions to customers and end-users, particularly within power tool accessories. The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2017.

2016 ACQUISITIONS

During 2016, the Company completed five small acquisitions for a total purchase price of $59.3 million, net of cash acquired, which are being integrated into the Company’s Tools & Storage and Security segments. The total purchase price for the acquisitions was allocated to the assets and liabilities assumed based on their estimated fair values. The purchase accounting for these acquisitions is substantially complete with the exception of certain minor items and will be completed within the measurement period.

2015 ACQUISITIONS

The Company completed two small acquisitions for a total purchase price of $17.2 million, net of cash acquired, which have been consolidated into the Company's Security segment.

ACTUAL AND PRO-FORMA IMPACT FROM ACQUISITIONS

As noted above, the Company completed five small acquisitions in 2016 and two small acquisitions in 2015, which did not have a significant impact on the Company's Consolidated Statements of Operations for the years ended December 31, 2016 or January 2, 2016. The Company did not complete any acquisitions during 2014.