On January 5, 2017, Stanley Black & Decker and Sears Holdings Corporation announced that they have entered into a definitive agreement under which Stanley Black & Decker will purchase the Craftsman brand from Sears Holdings. The transaction provides Stanley Black & Decker with the rights to develop, manufacture and sell Craftsman‑branded products in non‑Sears Holdings retail, industrial and online sales channels across the U.S. and in other countries. As part of the agreement, Sears Holdings will continue to offer Craftsman‑branded products, sourced from existing suppliers, through its current retail channels via a perpetual license from Stanley Black & Decker, which will be royalty‑free for the first 15 years after closing and royalty‑bearing thereafter. Cravath is representing Stanley Black & Decker in connection with the transaction.
The Cravath team is led by partner Robert I. Townsend III and includes partner Thomas E. Dunn and associates Mark Mushkin, Cameron S. Stanton and Justin B. Stein on corporate matters; partner David J. Kappos and practice area attorney Anthony N. Magistrale on intellectual property matters; partners Stephen L. Gordon and Kara L. Mungovan and associate Joyce Y. Kim on tax matters; partner Eric W. Hilfers and practice area attorney M. C. Tania Balthazaar on executive compensation and benefits matters; partner Matthew Morreale and senior attorney Annmarie M. Terraciano on environmental matters; and partners George E. Zobitz and Paul H. Zumbro on bankruptcy structuring matters. Ammanuel G. Gebeyehu, Brian C. Mulhall and Caleb B. Rosser also worked on corporate matters.