Posted August 23, 2010
Ideal Industries to buy SK Hand Tools
Ideal Industries Inc. has entered into a definitive agreement to purchase certain assets of SK Hand Tools Corporation, a manufacturer of tools for the professional mechanic.
The asset sale, worth about $3.5 million according to bankruptcy court documents, is expected to be finalized on Aug. 25, with Ideal assuming no liabilities. SK had filed for bankruptcy protection with the United States Bankruptcy Court for the Northern District of Illinois Eastern Division on June 29. At the time, the company owed its primary lender about $9 million, according to court documents.
Doug Spitler, vice president and general manager of Ideal's Retail and Industrial Divisions, has been named to run the new company, which will operate as a wholly owned subsidiary of IDEAL.
"Acquiring SK Hand Tools will expand our focus on American-made quality, service and value. Loyal customers can count on the SK brand being re-energized under Ideal ownership as the premier 'Made in USA' line of professional tools," said Spitler.
This latest move follows Ideal's acquisition of American tool makers Western Forge and Pratt Read earlier this year. Although Ideal is still formalizing plans, the company is committed to manufacturing SK tools in the United States, either by integrating production into its existing plants or building a new, state-of-the-art facility, according to a company press release. Ideal will publish its comprehensive manufacturing plans for SK within 30 days after the sale closes.
Founded in 1921, Chicago-based SK Hand Tools manufactures sockets, ratchets, hammers and wrenches. Ideal intends to sell SK Hand Tools' portfolio of nearly 4,000 tools under the SK brand throughout the automotive and industrial channels of distribution.
