Stanley acquires Lenox and Irwin

[toolnut]

I was reading about the Craftsman purchase on the Stanley site when I see that Stanley also purchased Lenox and Irwin. I thought Irwin was owed by Rubbermaid along with Vise-grip. Things happen fast I guess. Does anyone have any insight into this purchase and why?

 

[AngryBeaver]

Stock up on Lenox razor blades and sawzall blades. The quality will go down hill.

 

[toolnut]

Lol! Lenox was USA I was looking at the packs at work. Hopefully that won't change...

 

[toplessHO]

Stock up on Lenox razor blades and sawzall blades. The quality will go down hill.

as for sawzall blades I havent found any that compare to the Milwaukee,and Ive
tried them all.
some (made in USA) even broke doing the first cut.
Ive had bimetal Milwaukees bent into a 90*or an S and straighten them out and keep sawing.

 

[850xpeps]

as for sawzall blades I havent found any that compare to the Milwaukee,and Ive

tried them all.

some (made in USA) even broke doing the first cut.

Ive had bimetal Milwaukees bent into a 90*or an S and straighten them out and keep sawing.

X2 on Milwaukee but torch has also been good and task surprisingly.

 

[MikeF2316]

It pretty much goes without saying, competition is good, both for prices and innovation. So this is bad. At the rate it's going there's going to be only 2 companies owning all the brand name we know (and used to love), and making the same product with multiple names on them.

 

[winlinmac]

Typical monopoly, not surprised, consolidate all US-based companies, move production overseas, and maximize profits. I don't think Stanley will ever reach 100% US-based production

I was reading about the Craftsman purchase on the Stanley site when I see that Stanley also purchased Lenox and Irwin. I thought Irwin was owed by Rubbermaid along with Vise-grip. Things happen fast I guess. Does anyone have any insight into this purchase and why?

 

[Stuey]

This happened 10 months ago.

http://toolguyd.com/stanley-black-decker-bought-irwin-lenox-tool-brands/

Last week SBD sent out a press release about expanded Irwin screwdriver offerings. Nothing much else has announced yet. It'll likely be a little more time until the brands are fully integrated and their potential realized.

 

[Firebrick43]

as for sawzall blades I havent found any that compare to the Milwaukee,and Ive
tried them all.
some (made in USA) even broke doing the first cut.
Ive had bimetal Milwaukees bent into a 90*or an S and straighten them out and keep sawing.

Have you tried the Lennox thick metal? At work there is a semi common job that requires cutting a 2.5" shaft in a really bad location that we can't use a cutting torch. We have to cut it four places to remove it. The two blades we have is the Milwaukee torch blades and the Lenox thick metal in 6".

The Milwaukee need changed out at least once per cut and sometimes twice. The Lenox will make 1.5 cuts before the poor teeth head south.

Also the Milwaukee hackzall specific blade really **** for life. I still use the emt ones however as they start so well and don't jump out of the cut sometimes like others do.

 

[toolnut]

It reminds me of when the Triangle corp bought Utica , Bonney ,Xcelite , Diamond,Crescent , Weller, and a few others and than it was renamed Cooper industries and than they eliminated names and now are Chinese made for the most part.

 

[LB-1911]

I was reading about the Craftsman purchase on the Stanley site when I see that Stanley also purchased Lenox and Irwin.

I thought Irwin was owed by Rubbermaid along with Vise-grip.

Things happen fast I guess.

Does anyone have any insight into this purchase and why?

Previous thread

10-12-2016

It is official: Stanley/Black and Decker just bought Newell (Irwin and Lenox).

They may buy Craftsman next.

https://www.thestreet.com/story/138...mp-a-machine-with-1-95b-newell-tools-buy.html

The big get bigger.

Apparently, Newell Rubbermaid managed to get a good price for from Stanley B&D.

Here's another article on the acquisition.

https://www.bloomberg.com/gadfly/ar...ewell-tools-deal-better-than-buying-craftsman

 

[Musicinabottle]

as for sawzall blades I havent found any that compare to the Milwaukee,and Ive
tried them all.
some (made in USA) even broke doing the first cut.
Ive had bimetal Milwaukees bent into a 90*or an S and straighten them out and keep sawing.

Milwaukee is good, so is Lenox, Maven and Greenlee.

 

[rustyjames]

Stanley is also Proto. I just found that out a few weeks ago.

 

[Musicinabottle]

Stanley is also Proto. I just found that out a few weeks ago.

Stanley also owns Wells Fargo, Bank of America, General Electric, Chevron and Youtube. Just kidding. But they probably own a lot more than we all know.

 

[PFSard]

Stanley also owns Wells Fargo, Bank of America, General Electric, Chevron and Youtube. Just kidding. But they probably own a lot more than we all know.

Here's a presentation on their brands from SBD's WebSite.
http://www.stanleyblackanddecker.com/our-businesses/our-brands

 

[zendriver]

They are a conglomerate and that's what conglomerates do?

 

[SantaAna12]

Shame.

It seems to be the business model of our day: buy a respected US company, take production overseas, lower quality, keep price high and ride the original rep into the ground.

Thanks for the heads up.

Another good reason to be on GJ.

 

[buckwheat_la]

Shame.

It seems to be the business model of our day: buy a respected US company, take production overseas, lower quality, keep price high and ride the original rep into the ground.

Thanks for the heads up.

Another good reason to be on GJ.

Sometimes this is the case for sure however it isn't always. Just because something gets moved overseas doesn't automatically mean quality suffers....

 

[SantaAna12]

Sometimes this is the case for sure however it isn't always. Just because something gets moved overseas doesn't automatically mean quality suffers....

True.

Just overwhelmingly the norm.

Just to be clear....overseas means China.

Lowering labor costs is as old as the concept of business.

"I bought the same model and the quality isn't like it used to be"

Lenox is a top-tier line. I doubt it will be in a year.

Just the way it is.

 

[Stuey]

Shame.

It seems to be the business model of our day: buy a respected US company, take production overseas, lower quality, keep price high and ride the original rep into the ground.

Thanks for the heads up.

Another good reason to be on GJ.

You have it wrong.

Rubbermaid put Irwin and Lenox up for sale.

http://toolguyd.com/newell-rubberma...l-brands-craftsman-reportedly-still-for-sale/

If SBD or another brand didn't buy them, then what? If not SBD, it would have been another large tool brand.

Besides, Rubbermaid did enough offshoring of Irwin tool production - there's not much SBD can do to further that.

 

[SantaAna12]

You have it wrong.

Rubbermaid put Irwin and Lenox up for sale.

http://toolguyd.com/newell-rubberma...l-brands-craftsman-reportedly-still-for-sale/

If SBD or another brand didn't buy them, then what? If not SBD, it would have been another large tool brand.

Besides, Rubbermaid did enough offshoring of Irwin tool production - there's not much SBD can do to further that.

I don't think I do Stuey, but you are entitled to your opinion.

Offshoring is exactly what I am talking about. The specifics of this case I took from the OP.

The concept is what I am speaking to, and offshoring a reputable brand to maximize profit is a popular business model these days.

Like I said: a good reason to be on GJ.

 

[dnschmidt]

Well, I talked to the Lenox guys at FABTECH 2016 in Las Vegas and they were super happy that they were no longer working for Newell-Rubbermaid. Newell-Rubbermaid is twice as bad as SBD could ever be was the general consensus of the Lenox people there.

 

[Stuey]

I don't think I do Stuey, but you are entitled to your opinion.

Offshoring is exactly what I am talking about. The specifics of this case I took from the OP.

The concept is what I am speaking to, and offshoring a reputable brand to maximize profit is a popular business model these days.

Like I said: a good reason to be on GJ.

Sorry, you *could* be wrong. So can I.

But right now, I don't see any indicators that this is the case:

It seems to be the business model of our day: buy a respected US company, take production overseas, lower quality, keep price high and ride the original rep into the ground.

SBD hasn't done that to any brand yet. They bought the Craftsman brand, and from what I'm told, they're intent on bringing production back to the USA.

They've brougth some cordless tool assembly back to the States.

Why would you assume or predict they're going to go to "take production overseas, lower quality, etc."?

 

[kwschumm]

I was reading about the Craftsman purchase on the Stanley site when I see that Stanley also purchased Lenox and Irwin. I thought Irwin was owed by Rubbermaid along with Vise-grip. Things happen fast I guess. Does anyone have any insight into this purchase and why?

All the executives went to US business schools where quarterly profits are the ONLY thing that matters, it's even more important than long term business viability. They all seem to think alike so their jobs could certainly be done by computer.

 

[derosa]

I don't buy anything Irwin and haven't in years, I'd tried to buy a couple tools that were made by record and vice-grip and found that Irwin had bought the brands, reduced the quality and shipped production overseas. Sad to hear on lenox, I used a lot of their saw blades rebuilding my house, taking out sections of studs from old window openings so real window frames could be built inside the wall without ruining the sheathing required blades that could cut at fairly extreme angles and they performed beautifully.

 

[bob15]

Stanley is also Proto. I just found that out a few weeks ago.

Stanley bought Proto from IR in 1984

 

[metaldad]

True.

Just overwhelmingly the norm.

Just to be clear....overseas means China.

Lowering labor costs is as old as the concept of business.

"I bought the same model and the quality isn't like it used to be"

Lenox is a top-tier line. I doubt it will be in a year.

Just the way it is.

yes, their blades are made here, with globally sourced materials.
their blades are.... meh. as are milwaukee. they dull, you replace. blades are consumables. throwaways.
all (lenox) their other offerings, screwdrivers, sheet metal cutters/crimpers, tubing cutters etc, were/are chinese
and for the most part, ****

 

[James-W]

I have never found Irwin to make anything that was really good. Everything I have ever bought that had the Irwin name on it has not worked out well for me. Maybe I expect too much but Irwin products just don't seem to work well for me.

 

[metaldad]

I have never found Irwin to make anything that was really good. Everything I have ever bought that had the Irwin name on it has not worked out well for me. Maybe I expect too much but Irwin products just don't seem to work well for me.

x2. more junk

 

[LXCam]

Lenox made the best blades and hole saws for decades. I sure hope nothing chang s but in the meantime I think I'll start buying up some deals when and where I find them.

 

[davethorik]

I have never found Irwin to make anything that was really good. Everything I have ever bought that had the Irwin name on it has not worked out well for me. Maybe I expect too much but Irwin products just don't seem to work well for me.

The only exception to this I can think of off the top of my head is the NWS relabeled pliers (made in Germany). I bought a set of the pistol grip needle nose on clearance at Lowes and I love them.

 

[rice rocket]

Not sure why everyone thinks it's all the doom and gloom.

Tool conglomerate owning a tool company is worse than a plastic bin manufacturer owning it? Is it opposite day? What's next, you'd guys rather see private equity firms take ownership?

 

[anndel]

SB&D bought Lenox and Irwin from Rubbermaid before buying Craftsman.

 

[6PTsocket]

It reminds me of when the Triangle corp bought Utica , Bonney ,Xcelite , Diamond,Crescent , Weller, and a few others and than it was renamed Cooper industries and than they eliminated names and now are Chinese made for the most part.

Then Cooper was merged with many Danaher brands to form Apex, which was sold to the current owner, Bain Capital.

Sent from my SM-G900V using Tapatalk

 

[Finance Guy]

With all due respect...

Newell sold the Irwin/Lenox brands because it was a non-core business.
Management teams do not invest new capital in non-core businesses.
Businesses that do not invest in new innovations are not really competing.
These brands are core businesses for SBD ... SBD is far more likely to invest new capital.

Thus, I would argue that the acquisition is excellent news for Irwin/Lenox and, frankly, excellent news for consumers. In fact, given that the tool business remains extremely fragmented, I would argue that it needs substantially more consolidation. Does anybody think that Festool's acquisition of SawStop will not result in more investment in SawStop? How is that a bad thing?

Lastly, has any company been more visible than SBD in its efforts to return production to the USA? (and yes, I know it's solely to take advantage of the current public perception ... so what?)

 

[LB-1911]

I don't buy anything Irwin and haven't in years, I'd tried to buy a couple tools that were made by record and vice-grip and found that Irwin had bought the brands, reduced the quality and shipped production overseas.

Sad to hear on lenox, I used a lot of their saw blades rebuilding my house, taking out sections of studs from old window openings so real window frames could be built inside the wall without ruining the sheathing required blades that could cut at fairly extreme angles and they performed beautifully.

You were ill informed.

1985 - American Tool Companies, Inc. is formed by the Petersen family and acquires Petersen Manufacturing*


1993 - American Tool acquires The IRWIN Tool Company, a revered manufacturer of power tool accessories and cutting tools


2002 - Newell Brands acquires American Tool

Source
http://www.irwin.com/about-us/irwin-history


*With the help of a minority investment by then Newell.
http://articles.chicagotribune.com/...ubbermaid-decker-executives-american-tool-cos

 

[kwschumm]

With all due respect...

Newell sold the Irwin/Lenox brands because it was a non-core business.
Management teams do not invest new capital in non-core businesses.
Businesses that do not invest in new innovations are not really competing.
These brands are core businesses for SBD ... SBD is far more likely to invest new capital.

<snip>

Well, you did a good job explaining that management doesn't invest in non-CORE businesses but you did not explain why a) why they don't intend for the non-CORE business to contribute to profits in the company, and b) why they wouldn't want to expand the profits that the non-CORE company might contribute to the bottom line. I'll add a C, why they would not want to keep the non-CORE business if it provides marketing exposure, jobs and pays for itself.

Again, this is the kind of stupidity they teach at business schools. Short term profits trump everything else.

 

[Finance Guy]

a) why they don't intend for the non-CORE business to contribute to profits in the company

Newell obviously decided that their core competencies were not in the tool business, and they could monetize (sell) the business and redeploy the cash towards more profitable endeavors within their core businesses.

“Newell Brands’ new strategic plan establishes a sharp set of portfolio choices and investment priorities that will focus resources on the businesses with the greatest potential for growth ... The actions we are taking will strengthen the underlying performance of the company and help unlock the unique opportunity for transformative value creation connected to the combination of Newell Rubbermaid and Jarden Corporation. While our Tools brands have been very good contributors to our results, we believe they will benefit from being part of Stanley Black & Decker, a global leader in the tools category."

b) why they wouldn't want to expand the profits that the non-CORE company might contribute to the bottom line

See above.

C, why they would not want to keep the non-CORE business if it provides marketing exposure, jobs and pays for itself

See above ... any investment that merely "pays for itself" is a bad investment.

Again, this is the kind of stupidity they teach at business schools. Short term profits trump everything else.

OK...

 

[kwschumm]

Newell obviously decided that their core competencies were not in the tool business, and they could monetize (sell) the business and redeploy the cash towards more profitable endeavors within their core businesses.

“Newell Brands’ new strategic plan establishes a sharp set of portfolio choices and investment priorities that will focus resources on the businesses with the greatest potential for growth ... The actions we are taking will strengthen the underlying performance of the company and help unlock the unique opportunity for transformative value creation connected to the combination of Newell Rubbermaid and Jarden Corporation. While our Tools brands have been very good contributors to our results, we believe they will benefit from being part of Stanley Black & Decker, a global leader in the tools category."



See above.



See above ... any investment that merely "pays for itself" is a bad investment.



OK...

Well, Newell could choose to enhance their core competencies. Guess that would require learning something new. Can't do that.

Regarding "any investment that merely "pays for itself" is a bad investment, now that is exactly what I mean about business schools. If I wasn't hamstrung by non-disclosure I could tell you a good story about a Fortune 500 tech company that made wonderful products for school science education, sold them at a price that turned a profit, and got the company name in front of hundreds of thousands, if not millions, of schoolkids and their parents. And the CEO and board killed it because it wasn't a big enough contributor to the bottom line. My view is that it was marketing that earned a profit and could capture a loyal following. I guess all big company wannabes are swilling at the trough of Gordon Gekko now.

 

[toolnut]

I was figuring Stanley was buying them for the patents and technology. Anything Lenox is already made in Black and Decker brands and the Stanley line itself. As for the Irwin line they could be interested in the Vise-grips. The new grippy screwdrivers are nice also. It would save them a lot in engineering and development across all their lines.