Supplier update
Stanley makes a play for heavy industrial equipment
Genesis makes specialty attachments for heavy equipment
Genesis makes specialty attachments for heavy equipment
 
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Swiss-based PU manufacturer is now part of Sika and Methven expansion in China
HNN Sources
Stanley buys maker of heavy equipment attachments; Sika acquires specialist foam systems company; Methven has a Chinese deal for its shower technology; Hilti wins Red Dot awards for product design; and a new pipe and drainage laser from Imex.
Stanley invests in industrial tool unit

Stanley Black & Decker (SBD) said it will pay USD690 million for a manufacturer of heavy equipment attachment tools, its third acquisition in two years.

The acquisition of International Equipment Solutions Attachments Group (IES Attachments) will diversify the company's presence in industrial markets and establishes another "well-defined path for continued profitable growth" according to chief executive officer James M. Loree.

IES Attachments' brands include Paladin, which makes excavators, wheel loaders, tractors and truck chassis; Genesis, which makes specialty attachments for the scrap processing, demolition, material handling and decommissioning industries; and Pengo, a manufacturer of augers and related parts for the utility, construction and agriculture markets.

Mr Loree said the brands generate about USD400 million in annual revenue, of which nearly two-thirds comes from after-market sales of heavy-tool attachments, like drilling augers, used in off-highway construction

The IES Attachments acquisition will be integrated into SBD's hydraulic tools business in its industrial segment. It is expected to add US25 cents to US30 cents in earnings per share by 2022. SBD posted USD8.04 in earnings per share last year.

The deal, which must be approved by regulators, will be paid for by available cash and proceeds from borrowing.
Q2 organic sales growth

SBD's 2018 second quarter financial results was led by continued double-digit sales growth year-over-year (YoY), including an acceleration in organic growth powered by its tools & storage segment.

The company posted total Q2 sales of USD3.64 billion, up 10.9% YoY, and up 13.5% from Q1's USD3.21 billion. SBD had approximately 7% organic sales growth in Q2, with strategic pricing actions responsible for one percentage point of that, volume comprising +6%, acquisitions at +3% and currency at +1%.

The company's Q2 profit of USD293.6 million also improved from USD277.6 million a year earlier and USD170.1 million in Q1. Gross margin of 35.3% in Q2 was down from 36.9% a year earlier and 36.3% in Q1, while Q2 operating margin of 13.2% was down from 14.3% a year earlier and up from 11.8% in Q1.

SBD's Q2 sales and profit numbers both exceeded Wall Street expectations.

It also announced the completion of the buyback of USD300 million more of its common stock, bringing its year-to-date repurchase total to USD500 million.
Sika acquires Swiss manufacturer

Sika has agreed to acquire Polypag, a Swiss-based manufacturer and developer of polyurethane foam systems. This acquisition will enhance Sika's expertise in the area of polyurethane foam development, expand its production capacity, and drive forward its specialist trade business.

Polypag was founded in 1980. Last year, it recorded annual sales of some CHF40 million (Swiss francs), with a workforce of 120 employees.

Foams based on polyurethane are used in professional construction applications as well as the DIY market. Sika EMEA regional manager, Ivo Schadler, said:
The acquisition of Polypag will significantly strengthen our sealing and bonding business. The combined technological and development expertise will open up new cross-selling opportunities. Moreover, by expanding the specialist trade business we will drive market penetration and establish growth platforms for both companies...
Sika's H1 profit

The company also reported a better-than-expected profit for the first half of the year recently, the first set of results since it settled its long-running feud with Saint-Gobain.

Sika said its net profit rose 11.4% during the first six months to CHF318.2 million, or AUD440.38 million, from CHF285.7 million (AUD395.62 million) a year earlier, beating analyst forecasts for CHF310 million (AUD429.06 million) in a Reuters poll.

The company said sales rose 16%, from CHF2.99 billion (AUD4.13 billion) to CHF3.47 billion (AUD4.80 billion), and said it was still on track for a more than 10% rise in sales to CHF7 billion (AUD9.68 billion). Sika expects EBIT and net profit to increase at a slightly higher rate than sales in 2018.

Sika repelled a hostile takeover bid from Saint-Gobain earlier in May 2018 after being locked in a bitter battle with the French construction materials company for three-and-a-half years. Under a settlement, Saint-Gobain dropped its plans to take control of Sika by buying the founding family's controlling stake. Instead, it agreed to take a 10.75% holding and not make a tender offer for Sika for at least six years.

Since then, Sika has adopted a simplified share structure and abolished the dual share scheme which enabled the takeover attempt to be launched.
Methven's China deal boosts share price

Tapware and showerware specialist, Methven's shares lifted 5% after it announced a deal with China's Jiangsu RuiZhiShang Building Materials Company to use its shower technology in a series of key projects over the next decade. In a statement to the stock exchange, the New Zealand-based company said:
By adding Methven showerware and tapware into RuiZhiShang's projects, Methven is targeting annual sales of between NZD8.5 and NZD10.5 million by 2020/21.

Methven is pursuing international growth in countries like China as it seeks to benefit from its investment in proprietary shower and tap technology. The Kiwi firm increased Chinese sales to NZD507,000 in the six months to Dec. 31, 2017, from NZD81,000 a year earlier, delivering earnings of NZD3,000 compared to a loss of NZD89,000 a year earlier. The company said it was in final negotiations with a number of new distributors to expand its presence in China.

Methven chief executive David Banfield said the company has delivered over 1 million Chinese yuan, or NZD217,000, in sales per month for the last four months and this current deal together with a national retail distributor it signed in March "further secures consumers' confidence in our brand, and enables us to deliver long-term profitable growth in China". He said:
The opportunity to bring our award-winning showerware and tapware into hundreds of premium hotels and high-end apartments allows us to tell our compelling brand and technology story to discerning Chinese consumers.

RuiZhiShang was set up in 2001 in China and specialises in supplying bathroom fittings. According to Methven, it signed its first distribution agreement with the company in November 2017, and they quickly brought Methven products into two large projects right after that.
Hilti wins product design awards

This year's Red Dot Design Award competition awarded the Hilti TE 50-AVR combihammer as the winner in its category. Judges cited the tool's "pioneering design". The tool provides improved performance at a lower weight than previous generations of the tool and features an optimised slip clutch which provides added user safety.

The sixth generation of the Hilti toolbox also received a Red Dot Design Award. It is equipped with a swivel handle, allowing two toolboxes to be easily carried in one hand, and a new interior which can be individually configured to hold various accessories.

Other Hilti products receiving Red Dot Awards include the range of cordless cutting tool, pipe crimper and punching tool. The TE 6- A36 cordless rotary hammer also received an award.

The Red Dot Design Award is a well-regarded international product design award. Submissions are assessed based on a criteria that includes innovation, ergonomics, functionality and quality.
Laser for major pipe works

Leading Australian supplier, Imex has released its latest technology pipe and drainage laser which combines a number of innovative features that increase efficiency and function for the professional civil contractor.

The new IPL3 series comes in both red and green beam and has a wireless remote setting. It auto tracks the target plate and fits in a 100mm PVC pipe.

This laser is also powered by an 8Ah lithium battery with a USB charging port - an Australian first - and is IP68 fully submersible for the harshest conditions.

A modern use for these pipe lasers is the setting up of columns for solar farms. To meet the needs of this new market, the Imex IPL3 has a unique lock-out grade mode which keeps the beam steady even when working in conjunction with pile driving.

The laser is set remotely via the remote control unit which can be used 100m away from it. The IPL3 has a working range of 300m at 1.5mm @30m accuracy.

The accompanying kit includes three target plates for different sized pipes, five different metal leg sets to suit pipe sizes from 100-500mm, a recharger and a USB charger and a remote. Main features include:
  • 300m range
  • Fits 100mm PVC
  • Auto tracks target plate
  • A -20% to +40% gradient
  • Lock-out grade (for solar farm pile driving)
  • 8 Ah lithium battery
  • IP68 fully submersible
  • 1.5mm @30m accuracy
  • LCD display remote - 100m pick-up from unit

  • Also included is a five-year warranty from Imex, the first calibration free and standard Calibration Certificate. For more details:
    Imex Lasers Australia homepage
    HNN Sources


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