Starrett tools sold to MiddleGround

[herr_oberst]

If you're a machinist, this is most likely pretty sad news.

http://www.starrett.com/news-events/the-l.s.-starrett-company-enters-into-a-merger-agreement-with-middleground-capital-to-become-private-company

“We are pleased to reach this agreement with MiddleGround, which provides a meaningful premium cash value to our shareholders,” said Douglas A. Starrett, Chairman of the Board of Directors, Chief Executive Officer and President. “Following comprehensive outreach to potential parties, our Board of Directors determined that MiddleGround is the right partner for Starrett because of its deep knowledge within the manufacturing industry. As a private company, the Company will have additional financial and operational flexibility to continue providing industry-leading service and products to our customers across our markets and maintaining Starrett’s proud tradition among its employees, communities and other stakeholders.”



ABOUT MIDDLEGROUND

MiddleGround Capital is a private equity firm based in Lexington, Kentucky with over $3.5 billion of assets under management. MiddleGround makes control equity investments in middle market B2B industrial and specialty distribution businesses. MiddleGround works with its portfolio companies to create value through a hands-on operational approach and partners with its management teams to support long-term growth strategies. For more information, please visit: https://middleground.com/.

[URY914]

They are cashing it and selling out.
Do these things ever work out for the consumer?

[unclebilly]

Not sad news at all. The Starrett of the last 10 years has not been the Starrett that my father, grandfathers, and great grandfathers used (all machinists).

The recent stuff is borderline garbage and some (not all) Chinese stuff is as good.

Mitutoyo eclipsed Starrett a long time ago.

[gsxrken]

Originally Posted by unclebilly

Not sad news at all. The Starrett of the last 10 years has not been the Starrett that my father, grandfathers, and great grandfathers used (all machinists).

The recent stuff is borderline garbage and some (not all) Chinese stuff is as good.

Mitutoyo eclipsed Starrett a long time ago.

Agreed. You have to look for made in the USA versions of Starrett, and really, Craigslist/ebay/FB Marketplace is the only way to go. There's enough older guys (ahem) hanging it up voluntarily or otherwise, and no one in their family has any concept of how to use machinist tools.

[drew1]

Did not see this coming. But about 15 years ago I posted on this forum about a decline in Starrett. I mostly preferred the feel of Browne and Sharp. In the 90s the union put Browne and Sharpe out of business and the Swiss company that made their dial calipers bought the name.

The decline in Starrett began with having stuff made in Red China. Can't blame them for wanting to get in the Chinese market, but it was a mistake to sell Chinese made stuff in USA. Their hole saws were marked "Made in China", but not everything else. This may have been a factor in decline of sales in USA. They mostly sold their stuff at 'Made in USA" prices, although some they didn't. A buddy working in the maintenance machine shop at our plant got a real good deal on ebay for some dial calipers. They got a rough place in the rack and would not hold zero. I told him of a boy I knew that had gotten a free repair on some so he looked up the phone number in the Starrett catalog. His model was made in China to Starrett specs and no repair. One of us ended up with 2 scales. Checking for our initials, he noticed mine did not have Athol Masschusetts on it. So I guessed that I paid $20 when a $3 Harbor Freight scale was probably made in the same plant.

The ones it will be sad news for are the ones working in the Massechusetts plant. As seen that Middleground has plants in 21 countries, you can guess what will happen to them.

[herr_oberst]

Originally Posted by unclebilly

Not sad news at all. The Starrett of the last 10 years has not been the Starrett that my father, grandfathers, and great grandfathers used (all machinists).

The recent stuff is borderline garbage and some (not all) Chinese stuff is as good.

Mitutoyo eclipsed Starrett a long time ago.

I guess the sad part is that this puts the period at the end of the sentence. Just like Stanley tools and Sears Craftsman and Porter Cable (and... and...) before it.

[Dpmulvan]

Pretty soon they’ll close down the repair shop and it will just become another throw away brand. At least we still have mitutoyo for the time being if you can sort through all the Chinese counterfeits.

[wdfifteen]

Originally Posted by drew1

The ones it will be sad news for are the ones working in the Massechusetts plant. As seen that Middleground has plants in 21 countries, you can guess what will happen to them.

A common course for companies bought out by private equity investors is to strip the company of its assets, load it with debt, then file bankruptcy and close it down. I would be looking for opportunities elsewhere if I worked for Starrett.

[pwd72s]

Originally Posted by herr_oberst

I guess the sad part is that this puts the period at the end of the sentence. Just like Stanley tools and Sears Craftsman and Porter Cable (and... and...) before it.

Showing our age...and realizing that not all change is good. Sears Craftsman...damn I miss hanging out in tools when Cindy clothes shopped. Glad I bought the Craftsperson "made in USA" stuff when I did.

[sc_rufctr]

Sad news but was was an outcome like this inevitable?