Cooper Industries (CBE) and Danaher Corporation (DHR) have decided to sell off their jointly owned business, Apex Tool Group, to Bain Capital for approximately $1.6 billion. Both the companies had equal stake in Apex.
The deal is expected to be completed in the first half of 2013. The closing of the deal is subject to certain adjustments and some customary conditions, including regulatory approvals. Apex Tool Group’s financial advisor for the deal was Goldman Sachs.
Apex Tool Group was formed by Cooper and Danaher in July 2010, by combining their Tools business. Apex is based in Sparks, Maryland, and is one of the world’s largest makers of hand and power tools.
Incorporated in Ireland, headquartered in Houston, Texas, Cooper Industries Ltd. is a diversified manufacturer, marketer, and distributor of electrical products, tools, and hardware. On May 22, 2012, Cooper Industries announced that it has entered into a merger agreement with Eaton Corporation (ETN). The merger is expected to close in by the end of the year. Eaton is a renowned power management company while Cooper Industries specializes in electrical equipment.
Danaher Corporation was founded in 1969 and is headquartered in Washington, District of Columbia. The company designs, manufactures, and markets professional, medical, industrial, and commercial products and services, primarily in North America, Europe, and Asia/Australia.
We continue to maintain a Neutral rating on Cooper for the long term. The company has a Zacks #3 Rank (Hold recommendation) over the next one-to-three months. For Danaher as well we maintain a Neutral rating with a Zacks rank #3 (Hold recommendation).
COOPER INDS PLC (CBE): Free Stock Analysis Report
DANAHER CORP (DHR): Free Stock Analysis Report
EATON CORP (ETN): Free Stock Analysis Report
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