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  • Black and Decker buys

    I just found out that Black and Decker has bought porter-cable and some other tool companies from Pentair --i wonder what this means? porter-cable quality at black and decker prices i hope!

  • #2
    It has been rumored for months that Pentair is trying to sell Delta, Porter-Cable and DeVilbis but I wasn't aware that they had sold PC. Was this something that you heard or did you see a news release about it? I doubt very much if you'll see PC quality at B&D prices though. It would problably end up being a situation somewhere along the lines of the Bosch and Skil tools lines. B&D will continue to be the homeowner line and PC will continue to be marketed more toward the heavy use buyer.

    Oops, forgot that B&D already owns DeWalt. [img]redface.gif[/img]

    [ 07-19-2004, 10:54 AM: Message edited by: Badger Dave ]
    I decided to change calling the bathroom the "John" and renamed it the "Jim". I feel so much better saying I went to the Jim this morning.

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    • #3
      GOLDEN VALLEY, Minn., July 19 /PRNewswire-FirstCall/ -- Pentair, Inc. (NYSE: PNR - News) announced today that it has concluded its exploration of strategic alternatives for its wholly owned Tools Group, and that it has signed a definitive agreement to sell the Group to The Black & Decker Corporation (NYSE: BDK - News) of Towson, Maryland, for approximately $775 million. The transaction is expected to close in 2004, following the completion of customary regulatory clearance.
      "In the 1990s, Pentair was largely defined by its top-performing tools businesses but, today, the water and enclosures businesses are the driving forces in our growth and expansion," said Randall J. Hogan, Pentair chairman and chief executive officer. "The premier brands comprising our Tools Group continue to represent great value and have performed well against their competitors. However, the opportunities we see in the expansion of our Water and Enclosures Groups made the sale of the Tools Group a logical step to build greater value for Pentair shareholders. The Tools Group is a strong business that performed well for Pentair, and we believe it will continue to grow and prosper under the ownership of Black & Decker."

      Black & Decker is a global manufacturer and marketer of quality power tools and accessories, hardware and home improvement products, and technology-based fastening systems.

      Pentair's Tools Group comprises the Porter-Cable, Delta, DeVilbiss Air Power, Oldham Saw, and FLEX brands, among others. The Group employs approximately 4,200 people at facilities in North America, Europe and Asia.

      "Black & Decker is a recognized leader in the power tool industry and has proven its ability to grow and sustain strong brand names," Hogan said. "We are very confident that we are placing our Tools Group in the hands of a team that can further build the tools businesses to benefit their customers, their suppliers, and their employees."

      Pentair noted that the proceeds from the sale of the Tools Group will be used to pay down debt associated with Pentair's acquisition of WICOR Industries, which recently was approved by the Federal Trade Commission and is expected to be complete at the end of July.

      "Going forward, with Pentair's full resources focused on the growth and expansion of the Water and Enclosures Groups, we will become a much stronger, more nimble company, Hogan said. "We also expect to be much better positioned to achieve with greater consistency the growth goals our shareholders expect."

      Pentair will report earnings for the second quarter of 2004 on Wednesday, July 21. A conference call scheduled for 11:00 a.m. CDT that day will be webcast live via http://www.pentair.com. A link to the conference call is posted on the site's "Financial Information" page and will be archived at the same location.

      About Pentair, Inc.

      Pentair (http://www.pentair.com) is a diversified operating company headquartered in Minnesota. Its Water Technologies Group is a global leader in providing innovative products and systems used worldwide in the movement, treatment, storage and enjoyment of water. Pentair's Enclosures group is a leader in the global enclosures market, serving industrial and electronic customers, and its Tools Group markets innovative products under established brand names to professionals and do-it-yourself users. Pentair's 2003 revenues totaled $2.7 billion. The company employs 13,500 people in more than 50 locations around the world.

      Any statements made about the company's anticipated financial results are forward-looking statements subject to risks and uncertainties such as the ability to complete the sale of the Tools Group on its expected timetable, the ability to obtain regulatory approvals of the sale of the Tools Group on anticipated terms and schedule, continued economic growth; foreign currency effects; retail and industrial demand; product introductions; and pricing and other competitive pressures. Forward-looking statements included herein are made as of the date hereof and the company undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances. Actual results could differ materially from anticipated results.

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      • #4
        So, B&D will now own the B&D, DeWalt, PC, and Delta lines of power tools. What a can of worms this could turn out to be. With DeWalt and PC making basically the same tools, will one of them be discontinued? It makes little sense having them compete against each other.

        Let the Speculation Games begin! This should gives us something to talk about for the rest of the year.
        I decided to change calling the bathroom the "John" and renamed it the "Jim". I feel so much better saying I went to the Jim this morning.

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        • #5
          Actually BadgerDave it makes a lot of sense from B&D's prospective to keep all the tool lines. You want a new tool. You narrow it down to either a Dewalt of a PC. Each has features you like or don't like. You pick the one you like. B&D makes a profit no matter which way you choose. Unless of course you go with the Bosch. GM makes a lot more money with Chevrolet, Pontiac, Buick, Saturn, Cadillac etc. that with Chevrolet alone. B&D has nothing to loose and everything to gain.
          I came...<br /><br />I saw...<br /><br />I changed the plans.

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          • #6
            yeah, it makes sense as far as buying out one of your competitors and getting their business but $775M is $$$TEXAS (big money) for the mess they are getting. the tools companies for pentair had $1.08Billion in sales but "only" $82M in profits, which means B&D will really have to cut it apart and get it running more efficiently to really make it worth their while. just my $.02

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            • #7
              Well, it will be interesting to see what happens. I certainly don't have any gloom or doom predictions. B&D has done, IMO, an excellent job of segregating the quality of the cheaper B&D line from the more professional quality of DeWalt. Let's hope they continue with that approach.

              I would say, however, that with the lines of PC and DeWalt hand-held power tools, you'd have to wonder just how many duplications they would still carry. Don't see them doing much to Delta's stationary tool line, since their only duplication there are surface planers, CMSs and DW's one hybrid saw.

              I have never had to deal with DW's customer service, but Delta's is top of the line, IMO and I'd sure hate to see that change, as that was one of the main reasons I've purchased Delta products. We shall have to wait and see.
              Dave

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              • #8
                I agree with BadgerDave in that they will continue to maintain different grades of tools for different budgets. I don't even bother looking at Black & Decker. They are just too cheaply made for my taste. Not like they were in my Dad's day.

                But, I too expect that, with the duplication between PC and DeWalt lines, we MAY see some reduction in the lineup of tools. Around where I live, no one carries the Porter-Cable line of drills and drivers or any of their cordless stuff. The only things you can find are the awesome plate joiner, Tiger Saw, orbital sander, miter saw and their great pneumatic guns. On the other hand, there is yellow stuff all over. That is why I have a decent selection of yellow stuff myself. If this is the same most other places, I would be worried about the PC drills, drivers and cordless.

                I just hope that I'll still be able to buy the new Porter-Cable Razor saw blade. That thing is GREAT!!!

                [ 07-21-2004, 08:33 AM: Message edited by: George ]

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                • #9
                  Cross-post, because I didn't see this thread when I posted in the other...
                  ______________________________


                  I don't see this as a good thing for either brand (Delta or Porter/Cable.)

                  I used to design the Delta stationary tools when they were Rockwell, and franky, we cheapened the brand so much to keep up with foreign competition that the reutation of Rockwell/Delta came into question. When Rockwell sold the Power Tool division to Pentaire, the first thing they did was up the quality. I still remember seeing two page adds claiming "Delta: The old name, and the old quality is back!"

                  I don't imagine that being the case much longer under B&D. Remember when they deteriorated their hand tool quality so much that even the B&D Pro line was crappy? They had to buy DeWalt to re-badge their pro line, hoping no one would recognize it as ex-B&D Pro...

                  As for P/C; it never really suffered under Rockwell (except the horrible "green line" of products), and only increased in quality and reputation under Pentaire. I think this will deteriorate, too, but hopefully not before I buy the rest of the P/C tools I want!

                  Hopefully, I'm wrong on both accounts!

                  Steve
                  Steve
                  www.MorrisGarage.com

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                  • #10
                    Steve---very interesting history. Didn't realize that the Rockwell era was poorer quality. Good to know if I ever come up against a used Uni.

                    BTW----while it wasn't in the press release, I believe Pentaire bought Oldham last year as well---don't care much for their blades, but their Viper router bits were pretty good.

                    Yes, B&D used to make a great tool----I have one of their 3/8" corded drills (Professional) which is as good as my first power tool---a B&D drill, bought with S&H Green Stamps (boy that's dating myself)

                    I really hope they don't have to destroy what is already in place----great parts availability, great service and Delta's willingness to fix mfgr's defects even after the warranty expired. They always bent over backwards to make you loyal to the brand, which is why my last two stationary tool purchases were Delta.

                    Guess you can't count on anything anymore----on one hand, I feel comfortable because B&D kept the DeWalt quality after they bought them (was it from AMF?). Let's hope they don't "streamline" Delta and PC so much that we loose what we've got----only time will tell.
                    Dave

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                    • #11
                      Originally posted by daveferg:
                      Steve---very interesting history. Didn't realize that the Rockwell era was poorer quality. Good to know if I ever come up against a used Uni.
                      Let me re-phrase that. In order to keep themselves in business (which eventually failed), Rockwell/Delta used cost reductions wherever possible. One of the first projects I was involved with in 1974 was called DAFI, or Design Away From Iron. We substitited stampings and fabrications wherever possible. The 20" bandsaw cabinet and 12/14" table saw were still extrordinarliy sturdy, but not as much as when there were machined iron castings with steel covers and guards.

                      Other examples were bushings instead of bearings, one bearing where two would be better, Taiwanese bearings (when you never even heard of anything coming out of Taiwan), lesser belts and sheaves, etc.

                      These are all the norm today, but in 1980 when the doors closed on the stationary tools plant in Bellefontaine, Ohio, it was a sign of lesser quality compared to the other professional stationary tools.

                      The last thing we did was try to design a very low cost 15" drill press at a cost of $150 to manufacture (somewhere around $450 retail - $300 discount.) It had cast aluminum legs, steel tube column, a fabricated table, plastic guards, and 7M profile belt. You could go to a farm supply store in the same town and pick up a $150 Taiwanese 15" drill press with turned iron column, iron tilt/rack table, iron base and head, and stamped covers, etc.

                      So, poorer quality is all relative. I'd also like to have a Unisaw in the shop, regardless of its vintage!

                      Sorry to confuse...
                      Steve
                      Steve
                      www.MorrisGarage.com

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                      • #12
                        Steve---again---great to get an inside perspective. As one who tends to over-build everything I make, guess I can appreciate the brute heft of the older tools. I love going into machine shops and the like and seeing these old iron tools----most dating well before WWII and even further back. We'll likely never see that again.
                        Dave

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                        • #13
                          From where I see things,(selling tools for a living) these brands don't compete with each other as much as you would think. Dewalt is primarily a construction tool brand, where as I sell more PC/Delta products to the woodworking community. Now I can see B&D and Delta competing in the small tool area (ie; drills and such) but other than that I don;t see that much of a competition. The other thing that I see is customer service. While Delta has always been known for their great customer service, there has been a decline in that service over the last few years. Hopefully this will boost that service back up to where it should be.
                          While I don't just buy a tool because of the name on it, customer service is always a deciding factor in any purchase made.
                          I hope that this all works out for the consumers sake because it would be a shame to see any of thes brands disappear.
                          Jeff

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