Stanley Works (SWK) is already identifying possible acquisition targets in health care and infrastructure: two areas it expects to develop for growth following its combination with Black & Decker Corp. (BDK), Stanley Chief Operating Officer James Loree said Tuesday.

"Do we have specific targets? The answer is yes," Loree said during questions at the Baird Industrial conference, which was Webcast.

"Back in 2002 and 2003, we had talked about building our security business to a billion-dollar-plus platform when it was $300 million in revenue, and everyone looked at us with skepticism, but we methodically went about doing that," he said. "We're taking the same exact approach to health care and infrastructure."

Loree also reiterated financial expectations surrounding the $4.5 billion deal, announced last week. Among them: the merger should close in the first half of 2010, should yield $350 million in cost cuts within three years and should boost earnings per share by $1 within three years.

The deal would give Black & Decker shareholders 1.275 shares of Stanley for each share.

Stanley shares recently traded at $50.18, implying Black & Decker shares would be worth about $63.98. Black & Decker shares were down 2 cents at $62.25 in recent trading.

-By Mary Ellen Lloyd, Dow Jones Newswires, 704-948-9145; maryellen.lloyd@dowjones.com
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