Apex Tool Group, owners of Crescent, Geawrench, Weller, Cleco, and other recognizable tool brands, announced a change in ownership that will take place as part of a debt refinancing plan.
In a letter to their suppliers, Apex Tool Group says that there will be a change in ownership, from Bain Capital to a group of existing lenders.
The transition is expected to take place by the end of year, pending regulatory approval.
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ATG says that the new owners will be “led by” TPG Angelo Gordon, a credit and real estate investing platform, and American Industrial Partners (AIP), an operationally oriented private equity firm that ATG says is “focused on buying and improving industrial businesses.”
It sounds to me like Bain Capital, which acquired Apex Tool Group in 2012, sold off the entire collection of tool brands to some of its lenders, rather than paying off their debt.
There were news reports a few years ago about Bain Capital trying and failing to sell the Apex Tool Group – see Bain Capital Tried to Sell Apex Tool Group (Gearwrench and Crescent).
Additional details are not yet available, and it is unclear what the change in ownership will mean for Crescent, Gearwrench, and the other tool brands under Apex Tool Groups’ corporate umbrella.
What’s ironic is that Gearwrench positioned itself as offering “more [tool] set, less debt” compared to tool truck brands, such as Snap-on.
I asked our PR contact for more info, but have not yet heard back.
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dave@work
Well, that’s sad.
Bonnie
Eh, being shuffled from one private equity firm to another doesn’t really move the needle.
MC703
The new PE owner may have “better” ideas on how to lean out and extract maximum value from the brands.
Usually things enshitify in that direction rather than actually improving quality and value to the customer
Bonnie
Perhaps, but it’s not like Bain Capital is famous for being caring stewards and customer-centric.
Joe E.
I purchased a lot of GearWrench when the tools were red & black. When they rebranded to this yellow crap and the quality appeared to suffer, I noped out.
Hector
The have to go back in track with Armstrong Tools
Callelle
So in other words, Gearwrench will be cheapening up even more. Probably gonna guy more IPs and consolidate companies. Apex tool group has been one of the worst things to happen to the tool world.
Jronman
Except for the Crescent Lufkin Nite Eye tape measures that were launched under the Bain Capital ownership. Those turned into my favorite tape measure.
Robert
“more [tool] set, less debt”
The Bain of our existence.
Champs
Private equity in a nutshell. Love it!
Peter
😂
fred
And just when Cleco had piqued my interest once again. I thought that they were modernizing the brand with their cordless torque limiting screwdrivers and nutrunners that are using Milwaukee M18 batteries.
EBT
Well, might be time to get that set I want to keep in a vehicle …the three drawer kit.
Nathan
Could be a good thing. Bain didn’t do them any favors but they make decent stuff today hopefully that continues
Scottie
I know everyone hates on Apex,and rightfully so for what they did to Armstrong,Allen and Craftsman for that matter…But anytime I have had to warranty out a tool,they authorize a replacement no questions asked….So they do right by me….Just hope it continues with the new owners.
Phranq
Always disheartening when a company gets sold to a group of shareholders solely focused on quarterly earnings versus long term growth. Of course, all of these brands jumped the shark years ago.
Andy
Just remember, a lot of Americans support themselves on those quarterly earnings. But yeah, kinda sad.
Obed
Well here’s hoping it’s for the better! Bring back Armstrong!!!
Eric
Glad to see them sold. Bain was a joke and the leaders were so busy going on trips and have excursions. Didn’t care about the brand or the growth of the company. They are a joke. Branding with milwaukee was the smartest thing they did. Too bad milwaukee didn’t pick them up they could have run the company correctly and made it what it should have been. Glad I am free from there scandals and games
Stuart
Both Stanley Black & Decker and Milwaukee have been buying up manufacturers. Milwaukee acquired Empire Level and Imperial Blades, and SBD acquired Waterloo (tool boxes) and a lawn and garden tool company. Do ATG brands hold any value for either Milwaukee or SBD?
Matt_T
I don’t see any value for SBD aside from taking out some competition. They don’t need any more brands and it wouldn’t add much, if any, capability.
TTI could definitely get value from a deal. Useful brands and product lines. Would also give them a foot into industrial markets.
Snap-on are another potential suitor with several acquisitions under their belts.
fred
Weller might add some capability for SBD, The Crescent brands – and others that come along (e.g. Campbell, HK Porter, Lufkin, Nicholson, Plumb, Utica, Wiss, Xcelite) might only add to the fruit salad of brands that SBD seems to be struggling with now. What to do with Dotco and Cleco is the question that interests me.
COBill
Though Milwaukee’s acquisition of Empire was in 2014, so hardly a recent acquisition.
CA
So you’re saying there’s a chance? Spray spray
Gary
I know Angelo Gordon well … they were our lender before we filed for bankruptcy, and took over the equity in the restructure. Sounds like the same thing happened here, they just did it outside of bankruptcy.
As AG is strictly a credit (and real estate) fund, I cannot see how anything good can come from this.
TomD
Exactly. This was a bankruptcy without the official paperwork.
Gary
Guess “icon” looking better and better..
JoeM
As long as Gearwrench maintains their standards through this, and don’t go defunct, I don’t personally care who owns them. My Stanley set of sockets and wrenches would do well with a suitable upgrade, were money not an object. There’s very few brands I would trust to go to for that upgrade, and Gearwrench is either 1 or 2 on the top of the list. Wera is there as well, quality wise, they are sharing that top spot, for what I do.
txhousa
They’re no longer made in USA, right?
ITCD
They mostly offshored years ago already.
PW
Another Private Equity “win”. Bought up a bunch of storied American manufacturers, liquidated and offshored anything remotely plausible, and converted a company that made things into a company that applies stickers to generic goods. If any remaining products accidentally still had quality, make sure and gut that too.
Result: so much “value” was “created” that the result isn’t even salable. Bain really fucked up their own playbook here – they held too long onto the pump ‘n dump, and now the result is a different kind of dump.
What a waste. These parasites are a nontrivial aspect of the destruction of the US economy.
Stuart
I can’t help but see this as “sorry, we still can’t pay you back, just take the whole company, thanks, bye” type of situation. How did this happen? Another example of fallout from Sears’ collapse and sale of Craftsman to SBD? Or was there more to it?
Matt_T
I’d say there’s more to it. On the consumer side they were also making tools for Kobalt. And IIRC Allen was Menards “house brand” for a while. They basically lost a race to the, import, bottom.
Danaher keeping Matco when they sold Apex also lost them a captive premium outlet. That’s likely one, if not the only, reason Armstrong was shuttered.
Ryan
They milked the brand names for everything they were worth, and then couldn’t offload them because (in my opinion) the tool game is so crowded with Taiwanese/Chinese tool resellers, nobody cared to buy brand names that had already been milked for all the good stuff. Crescent? Nothing but junk now, their reputation has been ruined. Jacobs Chuck? Imported junk, reputation ruined. Nicholson files? Imported junk, reputation ruined. Bain’s own private equity playbook bit them, and if it wasn’t for all the great brands they ruined in the process, I’d be happy they took the loss.
Donny
So cheaper tools. More outsourcing. Probably closing of any existing American plants. If any still exist. We have seen it over and over again. They did it to themselves.