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More consolidation in power tools: Pentair, Inc., Golden Valley, MN, is getting out of the tool business, with a definitive agreement to sell its Tools Group to The Black & Decker Corporation, Towson, MD, for approximately $775 million. Pentair's Tools Group comprises the Porter-Cable, Delta, DeVilbiss Air Power, Oldham Saw, and FLEX brands, among others. The Group employs 4,200 people at facilities in North America, Europe and Asia. 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.
The Timken Company, Canotn, OH, has acquired the assets of SES
Technical Group, a division of SES, LLC., as part of a strategy to offer a broader and enhanced range of friction management products and services. The SES Technical Group, Richfield, OH, specializes in vibration analysis, infrared thermography, continuous monitoring systems, wear particle analysis, and 24-hour emergency service. The acquisition of the SES Technical Group will add approximately $2.5 million in revenue to Timken Industrial Services, a Timken subsidiary that works with industrial end users, original equipment manufacturers and distributors globally to offer services such as bearing repair, bearing reclamation, component repair, on-site training, mill maintenance, diagnostic services, and now, predictive maintenance services.
Lincoln Electric Holdings, Inc., Cleveland, OH, has acquired controlling interests in three welding businesses in China. Lincoln owns the majority of a welding equipment manufacturing facility currently under construction in the Baoshan district of Shanghai, together with two welding consumables operations ' a flux-cored wire facility also located in Baoshan and a stick electrode factory in northern China. Annual sales of between $50 million and $60 million are expected for the acquired Chinese entities, in addition to revenues from another welding consumables facility in which Lincoln currently holds a 48% stake. This manufacturing operation, jointly owned with Tenwell and Kuang Tai, had 2003 revenues of $65 million with a leading position in the MIG wire market in China.
Another niche distribution software company is acquired. Speedware Corporation Inc., Montreal, Quebec, an enterprise software solutions and productivity tools provider, has agreed to purchase Prelude Systems, Inc., Dallas, TX, a 20-year provider of enterprise software solutions to the distribution market. Prelude has estimated revenues of $14 million, with a strong customer base in several MRO and hardgoods distribution sectors, including pool supply, industrial, automotive parts and consumer products.
May U.S. machine tool consumption was up nearly 10% from April to $224.30 million, according to the American Machine Tool Distributors' Association, and the Association For Manufacturing Technology. This total, as reported by companies participating in the USMTC program, was up 9.9% from April and up 54.2% from the total of $145.42 million reported for May 2003. With a year-to-date total of $1,041.37 million, 2004 is up 46.1% compared with 2003.
MSC Industrial Direct Co., Inc., Melville, NY, reported net sales for the third quarter ended May 29, 2004 increased 18.4% to $255.3 million, compared to net sales of $215.6 million in the third quarter