Starrett was sold to a private equity firm. There goes the finest tool maker in the world. I doubt it will be long until the factory in Athol is shuttered, workers laid off, and all production “offshored” to China. Hope I’m wrong
The end of Starrett
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jabberwoki
Well-known member
Damn, the flag should be at half mast.
What a shame.
What a shame.
garfunkle24
Well-known member
That is unwelcome news to me also, but between the title and "finest tool maker in the world" you're a bit hyperbolic. The latter is at least debatable.
For the interested....press release on the deal:
New ownership:
middleground.com
It's at least good to see that based on their portfolio the new owner isn't afraid of manufacturing and in fact focuses on it
The L.S. Starrett Company Enters Into a Merger Agreement With MiddleGround Capital to Become Private Company
The L.S. Starrett Company (“Starrett” or the “Company”) (NYSE: SCX) today announced that it has entered into a definitive merger agreement in a go-pri
www.businesswire.com
New ownership:
MiddleGround Capital – Middle Market Private Equity Firm
middleground.com
It's at least good to see that based on their portfolio the new owner isn't afraid of manufacturing and in fact focuses on it
Sure it can be debated but they have produced consistently high quality heirloom tools for over a century. Sad knowing a lot of people will probably lose their jobs from this in due time.
3baygarage
Well-known member
They use the word "reshore" in the article. Actually "reshoring".
"Starrett products over the course of their manufacturing careers, and we are excited about the opportunity to further position the company for its future on the front lines of innovation, advanced manufacturing and reshoring,” said John Stewart, Managing Partner of MiddleGround."
"Starrett products over the course of their manufacturing careers, and we are excited about the opportunity to further position the company for its future on the front lines of innovation, advanced manufacturing and reshoring,” said John Stewart, Managing Partner of MiddleGround."
That would be great if it pans out…but…
It doesn't say that they're going to be "reshoring", just that they're wanting to be on the front lines of the reshoring taking place. There is definitely reshoring taking place, the company I work for manufacturers all domestically, but a number of our components/suppliers are in the process of moving production of some parts back for a variety of reasons but at the end of the day it's about cost and profitability and not all the "costs" are captured in that bill of materials cost that supply mangt negotiates on
During Covid it too us 4 months to get a 0-25mm micrometer. And an automatic center punch order that never got filled. Seeing the stock price over the past year made me wonder if they were nearing bankruptcy. In any event, MiddleGroubd is not there to keep this company - private equity buys companies and turns them around for resale. It’s only going to make a profit by slashing costs and quality wherever it can.
Wamsutta
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Motorman55
Well-known member
Maybe they could make money by actually making and selling their products they offer?
pelletman
Well-known member
Not good for a country if we can't produce precision measuring tools here
COVID was really bad for manufacturing. As I’ve said in another post, my company has not yet recovered.
Theres nothing easy about what US manufacturers have been through. I can almost guarantee, delivery delays are not caused by ineptitude or indolence.
Theres nothing easy about what US manufacturers have been through. I can almost guarantee, delivery delays are not caused by ineptitude or indolence.
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That’s a Marie Antoinette response! Were it only that simple
scooby074
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This is pretty sad news. Selling to PE is rarely a good thing.
h~moto
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I've never been sure - how do you pronounce Starrett?
wssix99
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Vampires... https://middleground.com/news/
four.cycle
Well-known member
^ they might have been better off with Bain Capital ....
Depends what part of the country you from.
Stare-et, star-et
Mi-tu-toyo, mi-tu-toya
All-brect, all-brite
Prat-bur-nerd, prat-bra-nard
Cla-sing, clou-sing
Has, haus
A-lumn-tap, a-lu-ma-tap
Tap-magic, tap-matic
Kurt, kunt.... oh wait.
Ok, ok, maybe not always necessarily what part lf the country you from, some people just say things incorrectly intentionally but it's right to them. Like I know it's Kuh-ni-pex but I still say ni-pex.
LopezBart
Well-known member
I was in Sacramento many years ago and discovered that the locals call Goethe Park "Gaythee Park". Of course the Brits take the prize here, intentionally mispronouncing foreign words like left-tenant? Really?Depends what part of the country you from.
Family probably owned a good chunk, but Starret was publicly traded so majority in Wall Street's hands. Reading new owner's web page I have some hope they will put the company back in shape before selling it off in the next M&A deal (the very reason private equity funds exist).
woody 73
Well-known member
I don't know about the end of the company, but for many years some of their products were coming out of mainland China. I am afraid to think that now more and more of their products will be produced in China; how many I have no clue.
Sad news sorry to hear it.
Sad news sorry to hear it.
Bannik254
Well-known member
It is a shame since I think of Starrett as an American heritage company, being almost 150 years old, we lose part of our culture as a nation when these old companies and institutions go under. I know the brand name will continue but what the brand means to folks will change.
richfinn
Well-known member
You would be amazed at what actual English language sounds like nowadays, it's changing so fast/randomly (especially in large Cities)
There is a great Kubrick Movie "Clockwork Orange" where the main protagonists speak in a weird hybrid language that includes Russian slang words. It's like that only it uses slang from the USA/Jamaica/Southern Asia/Irish.
At first it was just street kids, but now some of those kids are teachers/cops/parents!!!
johnre
Well-known member
^^^^ This.
Their good name remains a valuable asset, and the buyer most certainly will continue to offer Starrett-branded tools. Whether or not there's a before - after break wherein if you want the old quality you will have to find it used, remains to be seen. It's kind of up to them.
And the record isn't good. Think Delta. Powermatic. Jorgensen (clamps). Craftsman (hand tools). The list goes on.
CHI_Tool&Die
Well-known member
Well that *****. I thought Starrett was in better shape based on their high prices and crazy backlog. I wouldn’t be surprised if they offshore most of it as a pretty sizable portion of Starrett’s offerings are already made overseas. Heck, the newer mics they make don’t even have USA on them, just the name Starrett.
I don’t know how this will play out. Starrett was the only US precision hand tool company left and it’s not exactly a hugely desirable market now that you have the influx of all the Chinese-made brands selling for dirt cheap.
I don’t know how this will play out. Starrett was the only US precision hand tool company left and it’s not exactly a hugely desirable market now that you have the influx of all the Chinese-made brands selling for dirt cheap.
Precision Engineering Corporation, aka PEC, still manufactures in the US. They are priced comparably to Starrett and fulfill many federal contracts but I have no idea as to quality
dutchgray
Well-known member
I recently bought a new set of internal micrometers, whatever oil is on them from the factory has gummed up and they won't turn, I think they will have to go in a kerosene bath for a while before I can use them.
I wonder what was really causing the backlog. It wasn’t like there was no demand for Starrett products, and most of their stuff was made in the USA. Their company served as a shiny example of American manufacturing, and what was possible in this country. on top of that, the company had a story place in the history of precision, metrology and machining, not to mention carpentry.
We know exactly what is going to happen here. It will begin with cuts to the quality of materials, and then siding low demand the factory will be shut down, the workers light off and production moved to China. The American system is broken, and every American leader has failed. Other first world countries just don’t seem to have this problem.
mrjaw14
Well-known member
It really feels like the end of an era. Craftsman, SK, Starrett, Armstrong and many others have gone by the wayside in relatively short time. I would think that with all the global instability it would be a national security matter to keep some of this manufacturing in the USA
I didn't read through all this but what happens next really depends on what the buyer plans to do with company and what the existing insiders plans are. This is a publicly traded company nearly 50% of current owners are already institutional investors. Taking company private could be means to keep it running the way it is. Or maybe Starret family wants to move on. Nobody really knows. My last job was very similar situation the PE firm that bought company retained almost all of management (except me lol) and rolled organization into portfolio of similar companies that PE firm was invested in. Most of the employees didn't even know company had been sold until they read the announcement. The only thing that changed in day to day operations was the company's name everything else stayed exactly the same as it had been before except the investors were different.
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