A deal that is all set to bring together the two most prominent names in the American hand and power tool manufacturing sector, Stanley Works and Black & Decker Corp., have joined together in a $4.5 Billion all-stock deal. Both the companies were struggling with slowdown and analysts are expecting things to improve for them post the deal.

Although Stanley is the smaller company, in terms of sales and employee base, it will be the acquirer in the deal which will hold a 22% premium for shareholders of B&D. For each Black & Decker share, shareholders are all set to receive 1.275 Stanley shares.

Black & Decker shareholders will own 49.5% of the joint company, while the rest will be with Stanley's shareholders. The transaction had been discussed thrice before and is backed on the similar view of both the companies that the current economic situation is improving and the housing sector is all set to bounce back into action.

As of the last trading figures collected on Monday, Black & Decker shares closed at $47.34 per share, while those of Stanley were at $45.15 per share. John F. Lundgren, Stanley's current Chief Executive, will be the joint Chief Executive for the company after the merger.