Danaher Corp., based in Washington, announced yesterday that it has been selected by Sears, Roebuck and Co. to become the sole source of Sears Craftsman mechanics' hand tools for the giant retail chain beginning next year.
"The potential 1992 sales increase is expected to exceed $40 million," George M. Sherman, Danaher's president and chief executive officer, said in a statement. The company said that sales connected to Sears Craftsman tools totaled about $142 million last year.
Tools involved in the new agreement include wrenches, ratchets and sockets, said Greg Rossiter, a spokesman for Sears in Chicago.
The tools are produced at Danaher plants in Springfield, Mass.; Springdale, Ark.; and Gastonia, N.C., he said.
"We've decided to consolidate the production of those types of tools," said Mr. Rossiter, noting that, after the agreement takes effect next January, Sears will cease buying Stanley brand mechanics' hand tools as it has in the past.
"The bottom line is that we're trying to provide value-added purchases for our customers," the Sears spokesman said.
He said that by having Danaher as its sole source of Craftsman mechanics' tools, the retailer will have more control over the production of these tools, including specifications.
"This gives us the opportunity to have one source which has dedicated a good portion of its production to Sears," Mr. Rossiter said.
He said that the new arrangement with Danaher "does not reflect negatively on our relationship with Stanley in any way. We have a very long-standing relationship with Stanley, and it's been a very good relationship.
"Stanley will remain a Sears source in other product lines, like tool fasteners."
Danaher Corp., which also has production facilities in Maryland, is a manufacturer of hand tools, process and environmental controls and transportation products.