Danaher tool group sold

[maxx1676]

Posted on September 25th, 2012

Danaher, who makes many Craftsman mechanics tools and owns Gearwrench, Armstrong, Matco, and other tool brands, partnered with Cooper Industries, who owns Crescent, Weller, Apex, and others, to create a joint venture back in March 2010. Earlier this year, March 2012, Danaher and Cooper started looking to sell the jointly owned Apex Tool Group.

It was recently announced that Danaher and Cooper are in final talks to sell the Apex Tool Group to Bain Capital, a private-equity firm, with pricing estimated to be ~$1.5 billion.
Directly Affected Brands

Airetool
Allen
Apex
Armstrong
Atkins
Belzer
Campbell
Cleco
Collins
Crescent
Delta Truck Boxes
Diamond
DGD
Dotco
Erem
Gearwrench
H.K. Porter
Iseli
Jacobs Chuck
Jobox
K-D Tools
K&F
Lufkin
Master Power
Mayle
Metronix
Nicholson
Plumb
Quackenbush
Recoules
Sata
Spline Gauges
Utica
Weller
Wiss
Xcelite

In addition to these Danaher and Cooper-owned brands, the sale will likely affect Craftsman and other 3rd party brands who have strong manufacturing ties to the Tool Group.

There is no telling what the sale of Apex will have on the affected brands. One thing is clear – if the deal goes through, Bain Capital will want a return on their investment.

Maybe Bain will keep things as they are, but it seems more likely that they will seek to divide the tool group and sell off some of the brands.

Bain Close to Deal to Buy Apex Tool – WSJ

The sale of Apex Tool Group looks to be inevitable. Companies don’t often report that a deal is close until they’ve at least reached the point of dotting the i’s and crossing the t’s.

Apex Tool Group has ~$225 million in annual earnings EBITDA, with estimated valuation of $1.5-1.8 billion.
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[foolishpride]

You mean Mittens bought Danaher?

 

[V70R]

There goes everything to China....

 

[SMKS]

The title is a little misleading, because Bain is considering buying Apex Tool Group. Danaher and Cooper merged their tool divisions into Apex.

Here's another Reuters article from today.

http://www.reuters.com/article/2012/09/19/us-apex-bain-idUSBRE88I1JY20120919

 

[RedFordTruck]

This can either be a good or bad thing. I really dont know how most of these brands can go more downhill, as Danaher/Cooper have destroyed many in recent years.


So maybe theres hope?

 

[Davefr]

There goes everything to China....

They're already there!!

 

[bobemmerich]

Hopefully someone high up the chain at Bain is a tool guy/girl (s), and know the great value of an American made tool.

 

[Stephenw]

They're already there!!

China, Mexico, or South America with nearly every brand in the Apex group.

 

[tmcowboy]

I'm not political, but I used to work in the M&A field. This is not good for American made tools.

 

[mopar01]

So what exactly does this mean for matco tools? Are they goin to import more then they already have? or start making things cheaper? I really only have a few matco tools, evrything ellse is mac or snap on. But the quality seems to be pretty good. I'm not aginsit using import tool when they are of quailty but not guna fill my box with the ****. Mac uses tawian and I only buy the american made stuff which is still quite a bit. **** even my snap on screw gun is made in china. O well I guess.

 

[hammlm]

Hopefully someone high up the chain at Bain is a tool guy/girl (s), and know the great value of an American made tool.

uhh, likely not. But the world does seem to full of hope and change. People "high up in the chain" at a $66 Billion enterprise aren't like us. Really.

 

[SMKS]

So what exactly does this mean for matco tools?

I think MATCO is the only brand that Danaher kept. So, if memory serves, MATCO is still part of Danaher (not Apex) and will probably stay that way.

But, that doesn't guarantee that the products will remain the same.

 

[haveissues]

Hopefully someone high up the chain at Bain is a tool guy/girl (s), and know the great value of an American made tool.

Yes, I'm sure that is the case....

 

[transamfan]

I think MATCO is the only brand that Danaher kept. So, if memory serves, MATCO is still part of Danaher (not Apex) and will probably stay that way.

But, that doesn't guarantee that the products will remain the same.

seems like everything was being imported over into Matco. first it was called silver eagle but then it seemed the imported stuff came in with matco on it. when my old bolt puller broke I had to warranty the whole set out because it wasnt available anymore..... It was USA made and had served me well. The new one was taiwan AND I had to pay like $75 extra to get it!
That along with a few other deals is why I bailed out and sold ALL of my Matco stuff.

 

[7th Kahuna]

I hate to see that list of tools associated with Bain Capital. Have we lost all pride?

 

[Skin]

I think MATCO is the only brand that Danaher kept. So, if memory serves, MATCO is still part of Danaher (not Apex) and will probably stay that way.

But, that doesn't guarantee that the products will remain the same.

Like i said in the other thread (locked) this is very strange to me because Armstrong supplied most of the Matco basic line like ratchets, extensions, and wrenches. So either they're going to contract out with their old company or they're going to seek alternate sources (probably Taiwan/Kabo where their highly successful ratcheting line is made).

As far as Armstrong is concerned i honestly dont think it will change much if at all. Their mission has always been to provide all or nearly all USA products (says it right on their site) and they are heavily involved in government and industrial contracts.



I emailed Matco a few days ago asking how they'd be handling the sale of Armstrong and got a completely vague response.

Nate,
All we can say is that Matco Tools are manufactured to Matco specifications which are controlled and monitored by Matco personnel (wherever they are manufactured) to obtain the highest quality and durability for the mobile market.

This does beg the question what will happen to things like 88T ratchets though, unless Danaher is still holding patents. Just seems like they would of sold or kept Matco and Armstrong together, not dumped just one or the other.

seems like everything was being imported over into Matco. first it was called silver eagle but then it seemed the imported stuff came in with matco on it. when my old bolt puller broke I had to warranty the whole set out because it wasnt available anymore..... It was USA made and had served me well. The new one was taiwan AND I had to pay like $75 extra to get it!
That along with a few other deals is why I bailed out and sold ALL of my Matco stuff.

Your old puller was probably OTC or KD, the former started importing most everything years ago and the latter brand was basically defunct. Remember that Matco rebrands or contracts out everything that isnt tool boxes and that includes being effected by what their suppliers are doing.

 

[nanofrog]

This can either be a good or bad thing. I really don't know how most of these brands can go more downhill, as Danaher/Cooper have destroyed many in recent years.

So maybe theres hope?

Given the usual aftermath of Investment firms acquiring manufacturing companies in general, and Bain in particular, I wouldn't bet on it.

They're already there!!

Yep, along with others (add Germany to the list already posted).

 

[rodm1]

This will be big dollars made for the stock holders. Forget china here they come india.

 

[Murphy4570]

Matco is probably gonna go down hill in a hurry. I don't own much of their tools due to knowing that most all of their stuff is just rebranded. I did purchase some of their air tools, since most all of that is made by IR.

 

[bcradio]

I hate to see that list of tools associated with Bain Capital. Have we lost all pride?

This has nothing to do with pride... it has to do with money.

If you think you can build a better tool at a reasonable price, then please do so. If so, I'd buy.

 

[CWP1616L]

That's one of the reasons why I like buying from Cornwell because none of my money is going to stock holders; just the Cornwell driver and the employees making the tools.

 

[Hootbro]

That's one of the reasons why I like buying from Cornwell because none of my money is going to stock holders; just the Cornwell driver and the employees making the tools.

That is nice, but they have the worst piss poor business model and non availability in the industry. To about 80% of the professional wrench turners out there, Cornwell is a Unicorn fantasy element.

 

[jjjrmx5]

To about 80% of the professional wrench turners out there, Cornwell is a Unicorn fantasy element.

I'd even say higher % than that.

It's a unicorn whose mane is trimmed and horn shined by mermaids and ridden only by select leprechauns.

LOLOLOL.

In a metropolis of 3 million folks I never see a Cornwell truck and know no one that is serviced by one.

No one./

 

[CWP1616L]

That is nice, but they have the worst piss poor business model and non availability in the industry. To about 80% of the professional wrench turners out there, Cornwell is a Unicorn fantasy element.

That's alright. I feel like I own an exclusive tool that not many mechanics have.

 

[mrjaw14]

pretty soon all our tools will be disposable. I can see it now....

"Um yes mam...that extra shop charge is for the disposable ratchet we have to use on your vehicle. it's only good for about 2 hours, so if the repair takes longer we'll have to charge you for another one"

 

[otis66]

I hate to see that list of tools associated with Bain Capital. Have we lost all pride?

Buy Wright Tools or SK Tools. Still proudly made in the USA.

 

[mrjaw14]

Buy Wright Tools or SK Tools. Still proudly made in the USA.

for now.

 

[d.mcfarland]

Buy Wright Tools or SK Tools. Still proudly made in the USA.

That's a valid point. People are more worried about price rather than where their money is going. I take the extra time to seek out American made products, but unfortunately, it's not nearly enough to make a difference.

 

[Hyster Gareth]

Simple if Matco's quality or COO on hardline tools changes vote with your wallet. As it is they and MAC source so much from the far east.

 

[woody 73]

It is not so easy today just when I think I found a company that make their products in the USA, I am finding it just ain't so.

 

[Murphy4570]

I'd even say higher % than that.

It's a unicorn whose mane is trimmed and horn shined by mermaids and ridden only by select leprechauns.

LOLOLOL.

In a metropolis of 3 million folks I never see a Cornwell truck and know no one that is serviced by one.

No one./

I have seen a Cornwell truck only once in my entire life so far. That was while driving around Salem County somewheres, out in BFE.

I own some Cornwell tools that I purchased used from another tech. Also one of their district reps came by my shop once about 3 years ago, asked what brands serviced my shop and when. He disappeared like a fart in the wind.

Cornwell pretty much doesn't exist. Same goes for MAC.

 

[SMKS]

Like i said in the other thread (locked) this is very strange to me because Armstrong supplied most of the Matco basic line like ratchets, extensions, and wrenches. So either they're going to contract out with their old company or they're going to seek alternate sources (probably Taiwan/Kabo where their highly successful ratcheting line is made).

I'm not trying to bash you, but people here frequently make these "Armstrong factory" or "made by Armstrong" claims, when in reality it seems like Armstrong, Matco, formally USA made Craftsman Pro, etc. are all just made in Apex Tools factories. Armstrong seems to just be another name Apex markets and stamps on tools.

But, your point is valid. Will Danaher keep sourcing Matco tools from Apex after the sale? I'm assuming the Matco tools are being produced in Apex factories, as I haven't seen anything saying otherwise. I doubt Danaher kept one or two hand tool factories just to produce Matco-branded tools that are nearly identical to the tools being made by Apex.

 

[eborcim]

They're already there!!

Thank you for the correct spelling.

 

[RedFordTruck]

for now.

I doubt SK will be moving much overseas in the near future cause didnt Ideal just invest a ton of money building a now factory when they bought the SK brand?

And I doubt Wright will go either.

 

[Skin]

I'm not trying to bash you, but people here frequently make these "Armstrong factory" or "made by Armstrong" claims, when in reality it seems like Armstrong, Matco, formally USA made Craftsman Pro, etc. are all just made in Apex Tools factories. Armstrong seems to just be another name Apex markets and stamps on tools.

? "Apex" didnt even exist until 2 years ago, the tools i mentioned have been made much longer than that. Its well known that Armstrong is the primary source for many of the tools simply rebranded to whatever is deemed necessary. Many of the shifts in ratchets/wrenches under the Matco brand happened immedietly after Armstrong was aquired (previously bonney/easco). I find it hard to believe they're simply selling a name, or that a name is all thats left of a tool manufacturer who has been in business since the turn of the century up until they were acquired by Danaher in 94.

 

[SMKS]

? "Apex" didnt even exist until 2 years ago, the tools i mentioned have been made much longer than that. Its well known that Armstrong is the primary source for many of the tools simply rebranded to whatever is deemed necessary. Many of the shifts in ratchets/wrenches under the Matco brand happened immedietly after Armstrong was aquired. I find it hard to believe they're simply selling a name, or that a name is all thats left of a tool manufacturer who has been in business since the turn of the century up until they were acquired by Danaher in 94.

Before Apex existed, all those brands (including Armstrong) were just made in factories owned by Danaher, it seems to me. Now those former Danaher factories are Apex factories

I don't know that it's "well known." Some people here make that claim, but I've never seen any real evidence. I'd be happy to see it, but no one has ever provided any that I've seen.

Again, I'm not trying to single you out. This just seems to be one of those topics where a couple people made claims and they get repeated by a bunch of people until they're "facts." I'd be happy to be proven wrong if someone can provide more solid info.

 

[mudflap]

I'd even say higher % than that.

It's a unicorn whose mane is trimmed and horn shined by mermaids and ridden only by select leprechauns.

LOLOLOL.

In a metropolis of 3 million folks I never see a Cornwell truck and know no one that is serviced by one.

No one./

LOL....Me neither, I did see pics of some Cornwell tools on the interweb one time. So i think they do exist. S-K has a similar problem, poor distribution, they need to team up with a major retailer (other than Grainger, and a few mom and pop shops)

 

[CWP1616L]

? "Apex" didnt even exist until 2 years ago,

Apex was a Cooper Tools brand that specialized in screwdriver bits and assembly tools.

 

[Wakefield]

Seen on box that a Bonney 3/4" drive socket came in-"Cooper Tools ,PO Box 728 ,Apex NC 27502

Is Apex Tool Group of today something entirely different than "Apex" an older brand of driver bits?

 

[CWP1616L]

In my opinion, there should be a law that prevents the purchasers of a company from using the prior company's brand name.