Monday March 4, 8:04 am Eastern Time
Press Release
SOURCE: Newell Rubbermaid Inc.
Newell Rubbermaid to Acquire American Tool, Marking Push Into Hand Tools And Power Tool Accessories
FREEPORT, Ill., March 4 /PRNewswire-FirstCall/ -- Newell Rubbermaid Inc. (NYSE: NWL - news) today announced it has reached a definitive agreement to acquire American Tool Companies, Inc., a leading manufacturer of hand tools and power tool accessories, in which Newell Rubbermaid already holds a 49.5 percent stake. The purchase price is $419 million, which includes cash for the majority shareholder's equity and the assumption of 100 percent of American Tool's debt.
The deal marks a significant expansion and enhancement of the company's product lines and customer base, launching it squarely into the estimated $10 billion-plus global market for hand tools and power tool accessories. With fiscal 2001 revenue of $443.6 million and manufacturing and distribution facilities in the U.S., Europe, South America, Australia and Asia, American Tool provides Newell Rubbermaid with a complementary business of substantial size and scope in the fast-growing ``do-it-yourself'' consumer market and also gives the company a strong platform to sell to the industrial and construction market.
American Tool's product portfolio includes branded hand tools such as Vise-Grip® pliers, Quik-Grip® hand clamps, Record® vices, Straight- Line(TM) marking tools and Prosnip® snips, in addition to power tool accessories such as Irwin® and Speedbor® wood boring bits, Hanson® drill bits, Marathon(TM) saw blades, Joran® masonry drill bits and Unibit(TM) step drills. Its products are distributed through large home improvement retailers in North America, Latin America, Europe and Australia, where Newell Rubbermaid is already a large and important supplier, and through industrial and construction distributors, who represent a growth channel for the company.
``American Tool is an outstanding strategic fit for our company,'' said Joseph Galli, Jr., Newell Rubbermaid's chief executive officer. ``This acquisition gives us significant scale in the growing 'do-it-yourself' retailing market and bolsters our product development capabilities across the high potential hardware and home improvement sectors. Given the extreme fragmentation in hand tools and power tool accessories, we believe Newell Rubbermaid has a great opportunity to achieve a leadership position in these markets.''
Mr. Galli said American Tool will be merged into and managed by Newell Rubbermaid's Levolor/Hardware Group, which in 2001 accounted for $1.4 billion of the company's nearly $7 billion in sales. The group manufactures and markets BernzOmatic® torches; paint applicators and accessories under the Shur-Line® and Rubbermaid® brands; cabinet and door hardware under the Amerock® and Douglas Kane(TM) brands; and window fashions under the Levolor®, Kirsch®, Gardinia® and Swish® brands.
The Levolor/Hardware Group is led by James J. Roberts, who, along with Mr. Galli, has extensive experience in the hand tools and power tools accessories businesses. During a 19-year career at Black & Decker Corporation, Mr. Roberts served as president of the company's Worldwide Accessories business and earlier was vice president and general manager of Professional Power Tools-Europe. Prior to joining Newell Rubbermaid in 2001, he served as president of Worldwide Hand Tools and Hardware for The Stanley Works.
Mr. Galli distinguished himself during 19 years at Black & Decker, rising to the rank of president of Black & Decker Power Tools and later president of Black & Decker Worldwide. Earlier, he was vice president of marketing and sales for the Black & Decker and DeWalt Power Tool Accessories business.
American Tool was formed in 1985 in order to purchase the business of Petersen Manufacturing Co., founded in 1924 by William Petersen, who invented the Vise-Grip® locking plier. The company, which is headquartered in Hoffman Estates, Ill., operates 20 manufacturing facilities and employs over 4,600 people. Under the leadership of Allen Petersen, the majority owner and the grandson of William Petersen, American Tool has grown into one of the world's largest manufacturers of hand tools and power tool accessories. Newell Rubbermaid's stake in American Tool dates to 1985.
The company said that the American Tool acquisition would be neutral to earnings this year and accretive in 2003. The agreement is subject to regulatory and other customary approvals and Newell Rubbermaid said it expects to close the transaction within 60 days.
Given the strong management experience of Mr. Galli, Mr. Roberts and other Newell Rubbermaid executives in the hand tools and power tools accessories markets, the company said it is confident that it can quickly assimilate American Tool and transform it into to a solid growth business for the corporation.
The deal represents the most significant acquisition for Newell Rubbermaid since it purchased The Gillette Company's stationery products business in late 2000. That deal added the global Parker®, Paper Mate®, Waterman® and Liquid Paper® brands and roughly $500 million in annual sales to the company's existing writing instruments business.
Newell Rubbermaid Inc. is a global marketer of consumer products with 2001 sales of nearly $7 billion and a powerful brand family including Sharpie®, Paper Mate®, Parker®, Waterman®, Rubbermaid®, Blue Ice®, Calphalon®, Little Tikes®, Graco®/Century®, Levolor®, Kirsch®, Shur-Line®, and Eldon®. The company is headquartered in Freeport, Illinois and employs 48,800 people worldwide. For more information, visit the company's web site at www.newellco.com .
SOURCE: Newell Rubbermaid Inc. |
