Black and Decker Buys Delta/Porter-Cable

[John Weber]

We'll guys I just spoke to a buddy at Delta and the announcement just came, Black and Decker bought the tool group from Pentair. You can read the press release via the link.

John

http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=PNR&script=410&layout=-6&item_id=592201

[Kent Cori]

Looks like it's a good time to buy any Delta or P-C tools that are still on the shelves. I'm betting that as soon as Black and Decker "improves" them, that the quality will not be as good.

[Kurt Aebi]

Has anyone given up on DeWalt tools since they got bought up by Black & Decker? I think that was a good purchase and have many DeWalt tools and like their quality. I have many B&D lighter duty tools and they are fine for low end stuff. I think it will be a good fit, if they do it right. I mean, Powermatic got bought by Jet and they kept the quality up, maybe B&D will do the same.

Let's give them a chance. At least it is an established woodworking tool company and not some money hungry holding group that is buying them.

[Dan Mages]

Oh man, I'm not sure if this is a good thing. Thanks for the info.

[Frank Pellow]

Kurt, I really hope that you are correct about B+D maintaining the quality but I doubt that they will. :mad: :(

[Jerry Olexa]

Im concerned!!! PC/ Delta were (are) 2 of my favorite and dependable lines of tools, Most of my current tools have those 2 labels! I am worried!! Jerry:confused:

[John Weber]

Anyone hear the B&D internet conference call this morning. B&D stock is up 12% and Pentair remained fairly flat. On the conference call B&D didn’t say much, although I missed most of it. They are looking for significant cost savings, 2/3’s coming from sales/marketing and 1/3 from manufacturing. The one thing I did hear a lot of was in reference to the B&D line was “do it yourself”, hopefully they have learned some lessons with DeWalt and won’t overlook the Delta and Porter Cable lines for woodworkers. While I missed most of the call, it was an interesting look at the other side – for sure not a bunch of woodworkers running the companies. Let’s hope for the best and especially for the great people still at the companies involved. They said they would keep “the best” people from each company, so it sounds as if there will be some layoffs.

I have a couple B&D professional line tools from many years ago and plenty of DeWalt. This can work if done right. Pentair was sucking the life blood out of the tool group, so keep an eye on the positive.

John

Here is another press release:

https://us.etrade.com/e/t/invest/Story?ID=STORYID%3De-trade_delv_2004_07_19_etrade_reuters-eng-reuters_RPT-BLACK-DECKER-TO-BUY-PENTAIR-UNIT-FOR-MLN&provider=ReutersUSCompanyNews

[Dan Stuewe]

This is really interesting because Porter Cable and DeWalt are (I'm guessing) #1 and #2 (in some order) in the power hand tool market (router, cordless drill/saw/flashlight, jig saw, etc.). And then you have portable miter saws and planners with Delta/P-C head-to-head with DeWalt. Will they maintain all those duplicates? I don't think it is only a concern for Delta/P-C fans, but DeWalt fans as well. This is a bit like the crazy idea of Boeing buying McDonnell Douglas! Oh wait, that already happened seven years ago :rolleyes: (has it been that long already?)

[Dave Anderson NH]

I suspect that the jury on this one will be out for quite a while. Generally when buyouts occur the early changes have to do with top level personnel and contol of inventory levels. It takes a few months to get the new management team in place and make strategic decisions vis a vis how to deal with duplicate lines, re-sourcing components and whole products, and the big killer- moving jobs and products out of their current manufacturing sites. If indeed the big cost savings are supplosed to come from sales/marketing (2/3) and manufacturing (1/3) I would expect that they will combine their sales and marketing departments and rep forces and unfortunately close many of their US manufacturing plants.

As for product line choices and quality, I wouldn't expect any changes other than some discontinued products for a year or more. Most likely a number of the slower selling low volume items will be discontinued fairly quickly though as a cost savings. If they lump all the PC and Delta products under the DeWalt label I'll bet quality stays fairly good, but if they rebadge stuff as B & D product quality will suffer though prices will come down.

Hey, it's all a big guess anyway.

[Bob_Hammond]

I don't see how it can be good. There will be a lot less competition in the market, which will probably lead to higher prices.

Bob

[Dan McLaughlin]

It also appears that Milwaukee is up for sale by its Swedish owner Atlas Copco (Stockholm:ATCOb.ST - News). An article I just read announcing the Pentair sale to B&D suggested that B&D might make a bid for Milwaukee Red.
Let's see Yellow + Gray + B&D Red + Milwaukee Red = :eek:

[Frank Pellow]

I don't see how it can be good. There will be a lot less competition in the market, which will probably lead to higher prices.

Bob

Hey Bob, you forgot the last part of the sentence ... higher prices and lower quality.

[Howard Acheson]

Just to clear up a point. DeWalt is a brand name owned by Black & Decker. DeWalt is not a separate company. B&D purchased the DeWalt company in the 60's and manufactured only a couple of their items and then let it die. B&D resurrected the "DeWalt" brand name in the late 80's to use as a high end brand. They folded the Elu company products(routers) into the DeWalt brand along with most of the B&D "Professional" line of powered hand tools and made everything yellow.

DeWalt tools are mostly made in the same plants as the B&D branded tools.

[Don Selke]

I gave up on DeWalt and switched to Porter Cable tools about 5 years ago. I now only buy Festool. Very expensive move but I know that they will last me the rest of my life and then will be handed down to my grand- son. OH will, as they say, "Nothing stays the same"

[Greg Mann]

I just made a statement in another thread that I feel is appropriate here. Don't reward mediocrity with your purchases. The best way to get this new conglomerate to improve quality is to buy quality wherever you can find it. They will get the message and ignore it at their own peril. Just my .02.

Greg

[Jim Becker]

I agree with Gregg, we should always "speak" with our investments and use our money wisely. Buying quality up front is one of the best ways to do that, no matter what the brand or color.

As to this particular transaction, it may actually be a positive for Delta and PC since they are moving to a company that is really focused on tools a lot more than Pentair has been. But like David said, the jury needs to remain out for a period of time to see what the real effect is...

My biggest concern with M&A activity like this always reverts to the human resources aspect. There is always job loss.

[Lloyd Robins]

I wasn't happy when they bought Elu, and I am less happy now. This will cut down on the number of people employed and the R and D will probably all be one group now. (Yellow PC tools? :( ) I wonder what will happen to Norm with the change. We still have Festool and others.

[Michael Ballent]

If it's any consolation to everyone, the guy in charge of DeWalt is a woodworker and seems to take the industry very seriously. Although I think that I would have preferred if Jet group had bought Porter-Cable and someone else bought Delta... Now that would have been a interesting change. :D

[Rich Konopka]

Past experiences with Dewalt have convinced me that they are not the quality manufacturer they once were. It's always about the bottom line. Quality costs costs money.

However, if you look and today's market reaction it was very favorable for BDK. Typically, the acquiring company takes an initial hit because of the outlay. Up almost 12% in one day on good earnings and acquisition? Nope, this is all reaction to a positive future for increased sales and revenues almost immediately after the deal consummates. The tools business is doing well. Their tools sales were up 11% for the quarter.

I think the P&C acquisition gave BDK a seque to create a niche and name recognition for P&C as a High end line. Why not make them a lline of high end equipment and get the high dollars?? Look at the Prices Festool, Fein, Lamella carry. They clearly have demonstrated they are serious about being the Number 1 in this sector.

I'm glad there are still many choices out there and lets all hope the outcome is positive although the better of us know that is unlikely based on the past.