3/31/2010
NEWS BRIEFS
Danaher Forming Joint Venture with Fastener Tool Maker
Danaher Corp. and Cooper Industries are forming a joint venture for portions of their tool businesses, the companies announced.
Danaher’s business, which includes Craftsman and Armstrong tools, and Cooper’s electrical and Apex fastening tools had combined sales of $1.2 billion in 2009.
Both companies get an equal stake in the deal, which is expected to close in the second quarter. The new company will make a $90 million dividend payment to Danaher, “potentially reflecting higher margins on the Danaher side of the business,” Reuters reports.
Danaher Tool Group President Steve Breitzka reportedly will be the venture’s chief executive.
The deal is expected reduce purchasing costs while expanding geographical and market reach and cross-promoting products, the partners said. ©2010 GlobalFastenerNews.com
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