Submitted by Fox First at Ten on October 10th
By The Associated Press
Danaher Corp. and Cooper Industries said Wednesday that they will sell a tool making business they created two years ago as a joint venture for about $1.6 billion to private equity firm Bain Capital.
Danaher is an industrial and medical equipment manufacturer based in Washington, D.C. Cooper is headquartered in Ireland and makes electrical components and tools.
The companies announced in March 2010 that they would blend some of their tool making businesses into a joint venture named Apex Tool Group. They completed the deal a couple months later and have each kept a 50 percent ownership interest.
Danaher said the sale price for the joint venture is subject to post-closing adjustments, and it expects to see after-tax net proceeds of about $650 million. The sellers expect the deal to close in the first half of next year, subject to regulatory approval.
Apex is based in Sparks, Md., and it markets brands like Armstrong Tools, Cieco and GearWrench, according to its website. It also makes private-label brands for large retailers and industrial distributors.
Shares of Danaher climbed 42 cents to $55.85 in premarket trading, while Cooper Industries stock fell 43 cents to $73.09.
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