Industrial tool maker,
Illinois Tool Works Inc.
) divested its Forkardt assets to
) for approximately $34 million, funded in cash and debt.
Forkardt is a Michigan based company that was merged with ITW
Workholding in 2004. Since then, the combined entities grew to
become one of the leading manufacturers of high-precision,
specialty and customized workholding devices for machine tools.
Forkardt has well-recognized brands working under its umbrella:
viz, Forkardt, NA Woodworth, Buck Chuck, Sheffler Collet, and
With the divestment of Forkardt, Illinois Tool is likely to
lose as much as $47 million in revenue, which the business
generated in year 2012 while it earned $34 million in sale
Prior to this transaction, Illinois Tool divested its
Decorative Surfaces segment in the fourth quarter 2012 as part of
the company's strategic initiative to grow through disposition of
non-core business. Alongside divestments, meaningful acquisitions
also remain a preferred way for expansion; the company spent
roughly $730 million on acquisitions for annualized acquired
revenue of approximately $500 million in 2012.
Other strategic initiatives of Illinois Tool aimed at
long-term growth include Business Simplification and Strategic
Sourcing. The first strategy is expected to bring smaller revenue
generation units having common products or line of business under
one roof while the second initiative will enable the company to
better manage its raw materials and other costs.
Illinois Tool Works is one of the leading manufacturers of
industrial products and equipment. The stock currently has a
Zacks Rank #3 (Hold). Other stocks to watch out for are
Tri-Tech Holding, Inc.
Omnitek Engineering Corp.
), each holding a Zacks Rank #1 (Strong Buy).
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ILL TOOL WORKS (ITW): Free Stock Analysis
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