Replies to post #29666 on Sears Holdings Corp. (fka SHLDQ)

[justthefactsmam]

Sears sold Craftsman to Stanley for $900 million because it had to raise cash. In a testament to Chairman and CEO Eddie Lampert's financial prowess, he structured the deal to allow Sears to also retain rights to manufacture and sell Craftsman tools in its stores, too, for a period of 15 years, plus receive annual payments of 2.5% to 3.5% on any sales Stanley makes for a period of three years.

So on one hand, Sears will still be able to realize some benefit from Stanley's decision to expand availability to Lowe's, but on the other, Sears could have been reaping all the benefits for itself.

https://www.sec.gov/Archives/edgar/data/1310067/000119312517075459/d330786d8k.htm