Black & Decker Corp. said it purchased Vector Products Inc., a designer of portable power products, for U.S. $160 million in cash.
Nolan D. Archibald, chairman and CEO, commented, "Vector is a highly innovative, fast-growing and profitable company that will fit well with the Black & Decker consumer products group. We began licensing the Black & Decker brand to Vector in 2005, and have become increasingly impressed with their talented team and entrepreneurial spirit over the past year. This acquisition will give us new technologies and categories that complement our world-class product development expertise, provide opportunities in the automotive and marine distribution channels, and generate synergies with our distribution network. We expect the transaction will be slightly accretive to earnings per share in 2006, and add $0.10 to $0.15 of annualized EPS in 2007. We also expect it will be accretive to our return on capital employed in 2008. Black & Decker remains committed to disciplined stewardship of capital, and this transaction aligns very well with our bolt-on acquisition strategy."
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