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Updated with analyst comments

Stanley Black & Decker (SWK) - Get Stanley Black & Decker, Inc. Report just drove a nail through the heart of dying Sears (SHLD)

The tool maker said Wednesday it would acquire Newell Brands' (NWL) - Get Newell Brands Inc Report tools business for $1.95 billion in cash in an effort to gain scale in industrial cutting equipment. The deal will add 15 cents a share to Stanley Black & Decker's earnings in the first year after closing, said the company.

"The addition of the iconic Lenox brand and very strong Irwin brand, as well as their associated power tool accessory and hand tool products, opens up exciting new sources of global growth in similar ways, albeit on a smaller scale, to what Black & Decker did in recent years," said Stanley Black & Decker's President and CEO James Loree in a statement. The company said the tool portfolio is its first major acquisition since 2013.

Because of the deal's significance in terms of money spent and the laborious post-acquisition integration process, it likely means Stanley Black & Decker is done for now buying businesses.

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That is ultimately bad news for struggling department store Sears. 

Shares of the once iconic retailer spiked as much as 19% on Oct. 4 on reports it was nearing a sale of Craftsman. Interested bidders, said reports at the time, included Stanley Black & Decker, Techtronic Industries, Apex Tool Group and Husqvarna. Final bids may value the brand at about $2 billion, and are reportedly due at the end of the month. 

"Sears' Craftsman business is less attractive to Stanley Black & Decker because Craftsman doesn't make its own tools, so it would be harder to generate cost reductions. "Apex makes a lot more sense for Craftsman, while Hong Kong's
Techtronic Industries is also hungry for M&A," pointed out 

Techtronic also makes some Craftsman products, as does Apex

Sears put its three best-known brands -- Craftsman, Diehard and Kenmore -- up for sale in late May in an effort to raise cash. Stanley Black & Decker choosing to buy Newell's tool line may also signal Sears is asking too much for Craftsman, something that could turn off other bidders as the sales process winds to a close this month. 

Newell Brands is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio.Want to be alerted before Cramer buys or sells NWL? Learn more now.