By Melodie Warner
Danaher Corp. (DHR) and Cooper Industries PLC (CBE) agreed to
sell their joint venture, Apex Tool Group, to Bain Capital LLC for
about $1.6 billion, subject to post-closing adjustments.
The Wall Street Journal reported last month the private-equity
firm Bain Capital was close to a deal to acquire Apex, which sells
hand and power tools under a host of brand names, including Lufkin
tape measures, Wiss scissors and Crescent wrenches along with
brands that cater to industrial users, such as Cleco, which sells
tools used in auto assembly.
Danaher said Wednesday it expects net proceeds of roughly $650
million from the sale.
Danaher and Cooper formed Apex in July 2010 to take advantage of
overlap in their product lines, manufacturing and sales forces. The
companies valued the venture at about $960 million when it was
created and Cooper said at the end of June it was worth about $1.1
billion.
Since its formation, Apex has posted rising profits due to
improved global demand for industrial tools.
Industrial manufacturer Eaton Corp. (ETN) agreed in May to
acquire the electrical-equipment supplier Cooper in a roughly $11.8
billion cash-and-stock deal.
Meanwhile, Danaher has been acquisitive over the years, recently
focusing its efforts on high-margin, high-growth medical and
science businesses and away from cyclical industrial product lines.
It agreed last month to acquire in-vitro diagnostics systems maker
Iris International Inc. (IRIS) in a deal valued at roughly $352
million.
--Ryan Dezember and Anupreeta Das contributed to this
report.
Write to Melodie Warner at melodie.warner@dowjones.com
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