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
- Delta Truck Boxes
- H.K. Porter
- Jacobs Chuck
- K-D Tools
- Master Power
- Spline Gauges
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.
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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.