A SAD DAY IN AMERICA - ANOTHER AMERICAN COMPANY BITES THE DUST!

[chief38]

I just saw the news regarding the LS Starrett Company in Athol MA. For those here who are not aware, Starrett was the premier American tool and precision instrument maker of micrometers, calipers, punches, measuring rules and all kinds of high quality measuring instruments. They just announced that they were sold to a private investment company.

To me that means they will be dissected, moved to China and have their name exploited as have many other former American names. A sad day indeed!! The name Starrett which was synonymous with the best quality American tools and instruments available, will now be just like all the others that have succumb to the Chinese wave that will eventually down us. I guess it had to happen eventually as it is nearly impossible for old American manufacturing company's to operate here and actually still make a profit.

Thankfully, I have pretty much every Starrett tool and instrument I have wanted or needed and since they have been around forever, there is still a fair amount of Starrett tools and instruments on eBay. BTW, their punches, calipers, rules and micrometers (IMHO) are second to none for those looking for quality G-smithing tools. Get 'em while you still can!


THE L.S. STARRETT COMPANY ENTERS INTO A MERGER AGREEMENT WITH MIDDLEGROUND CAPITAL TO BECOME PRIVATE COMPANY

 

[robertrwalsh]

That is truly a shame. I HOPE that the move to private ownership will NOT result in the company being gutted and/or sent off-shore. That is, unfortunately, probably not a realistic expectation.

 

[Frailer]

I saw this today, as well. Sad news, indeed; truly the end of an era.

 

[Liftrat]

That is sad news, but, perhaps, not unexpected these days. Starrett was the standard for precision where I worked for many years. I have a small chest of their micrometers and other instruments; they don't get used much anymore, but now I'll cherish them all the more.

 

[Rule3]

I just saw the news regarding the LS Starrett Company in Athol MA. For those here who are not aware, Starrett was the premier American tool and precision instrument maker of micrometers, calipers, punches, measuring rules and all kinds of high quality measuring instruments. They just announced that they were sold to a private investment company.

To me that means they will be dissected, moved to China and have their name exploited as have many other former American names. A sad day indeed!! The name Starrett which was synonymous with the best quality American tools and instruments available, will now be just like all the others that have succumb to the Chinese wave that will eventually down us. I guess it had to happen eventually as it is nearly impossible for old American manufacturing company's to operate here and actually still make a profit.

Thankfully, I have pretty much every Starrett tool and instrument I have wanted or needed and since they have been around forever, there is still a fair amount of Starrett tools and instruments on eBay. BTW, their punches, calipers, rules and micrometers (IMHO) are second to none for those looking for quality G-smithing tools. Get 'em while you still can!


THE L.S. STARRETT COMPANY ENTERS INTO A MERGER AGREEMENT WITH MIDDLEGROUND CAPITAL TO BECOME PRIVATE COMPANY

It might not be all doom and gloom that you anticipate.


MiddleGround Capital – Middle Market Private Equity Firm


Companies – MiddleGround Capital

 

[burneyr]

I dont understand why many folks equate private equity buyouts to offshoring and corporate raiding.

Starrett has offshored products to Brazil and Scotland since the 1980s, and has large manufacturing operations there like any multinational corporation selling in world wide markets. The company has been a world leader in laser measuring and QC products for a couple decades now which is a natural offshoot of their mechanical measuring equipment which most of us know and love.

The PE company that tendered the offer specializes in smaller capitalized industrial B2B companies that have a product or market poised to rise with above average growth. They specialize in assisting management capture market share. This isn't a raiding Wall Street firm - their management is filled with experienced people who have mostly worked/retired from manufacturing, have knowledge in process control, and developing products that suit industrial applications with the internal contacts of people who make multimillion dollar buying decisions within this environment.

With David Starrett approaching fifty years of employment with the company and sheparding as CEO to this level of achievement in technical prowess and profitability maybe there isn't a suitable successor? IIRC the last stockholder report I had indicated family ownership around 6% or so.

Anyway my point is PE buyouts aren't always a bad deal, and often an equity firm sees an opportunity to expand or redirect resources to increase value. Instead of sharing with stockholders in general they want it all to themselves. Starrett is profitable, debt-free, a market leader, and the market capitalization is something they can afford to buy outright.

Based on what I see and who is buying - I'd say the company is poised to go next level in some area. Not going cheap and whoring out a century plus reputation for quality.

Just my two cents fellas no disrespect towards anyone.

 

[Breakaway500]

Industrial companies are dropping like flies in the Commiewealth of Ma. The taxes are horrific and the regulations are enough so the only companies that are moving here are medical/insurance entities. Not much can be done as the powers that be want it that way. The Libbies control Bosstown which controls the state.

 

[M29since14]

When I was working, Starrett was always “the last word.” I spent many hours with a “Slimline” micrometer in my hands, probably many thousands of hours, and along the way I’ve tried various other brands - a couple of them very nicely designed and made - but I always preferred Starrett, for my uses. I’d hate to see anything bad happen to the company. I guess time will tell.

 

[chief38]

That is truly a shame. I HOPE that the move to private ownership will NOT result in the company being gutted and/or sent off-shore. That is, unfortunately, probably not a realistic expectation.

Despite what they say - it most likely will - just as usual.

 

[chief38]

It might not be all doom and gloom that you anticipate.


MiddleGround Capital – Middle Market Private Equity Firm


Companies – MiddleGround Capital

That's what they said about all the other American manufacturers too. I HOPE you are right - but I'd not bet 1 cent on that.

 

[Heinz]

I have a lot of Starrett tools and guages, a couple belonged to my grandfather. Most are pre-WW2. All are excellent, although I have to periodically retrain myself on those Vernier scales.

 

[Bald1]

If not for private investment there would be no Remington Arms. It doesn’t have to be bad news….. I’ll wait and see

 

[armorer951]

Sad for sure. Hope they don't outsource all their products or close completely.

BTW.....the company does perform repairs and service on their tools, so if you need any repairs done and you would like to have them done by the people who built them, this might be a good time to send them in.

Repair & Calibration


Carter

 

[Greyman50]

How long has Browne and Sharp been gone? There used to be some excellent Austrian and German made precision measuring tools. Sold off all my dial indicators and large mics, no need for them now.

 

[GypsmJim]

In my college days, working for an MBA, it was accepted that a corporation was out for X% profit margin. Today, an ROI greater than a year is unacceptable. The whole bizness world has changed.

Today, the stock market controls everything. If a company does not meet the stockholder's expectation, they are done for.

Today, the CEO and high level dodos make HUGE salaries.

While almost in bankruptcy, the company I worked for eliminated all the Vice Presidents..........they made them all SENIOR VPs and increased their salaries. They also eliminated 90% of the sales force and eliminated 100% of the technical sales to make up the pay difference.

I was forced to take classes in TQM and Six Sigma. One of the premises was that ALL problems are due to BAD MANAGEMENT. Our book for the salaried employees was custom printed, but they left that chapter out.

Hand tools are in some places being replaced by optical digital equipment, which may be part of Starretts issue.

Nevertheless, my vote is for bad management.

 

[6string]

That is concerning news!

I love all my Starrett tools. They not only perform flawlessly, they give my joy every time I pick one up, even if it's just a ruler.
You never had to worry about, "Which years are the good ones for a 1" micrometer", etc, etc. It was all great.
Take care of them and you're good for life!
Where else can you find that?

I hope they're not done.
Some good points about some of the contributing factors.

 

[nedlate]

To me that means they will be dissected, moved to China and have their name exploited as have many other former American names. A sad day indeed!! The name Starrett which was synonymous with the best quality American tools and instruments available, will now be just like all the others that have succumb to the Chinese wave that will eventually down us. I guess it had to happen eventually as it is nearly impossible for old American manufacturing company's to operate here and actually still make a profit.


THE L.S. STARRETT COMPANY ENTERS INTO A MERGER AGREEMENT WITH MIDDLEGROUND CAPITAL TO BECOME PRIVATE COMPANY

Our Company

Starett has had Chinese made tools for quite some time-I believe it is their "Exact" line. You can read it under the paragraph "WIDE MARKET PENETRATION AND DISTRIBUTION" on the page posted.

Ed

 

[old tanker]

How long has Browne and Sharp been gone? There used to be some excellent Austrian and German made precision measuring tools. Sold off all my dial indicators and large mics, no need for them now.

Scherr-Tumico survives, I think. Used to be the #3 after Starrett and Browne & Sharpe. Once upon a time water power made places like Springfield, Hartford and New Britain the hub of American precisone tools and manufacturing.

All that is gone, partly due to elitists looking upon those who actually make things with their skill and their hands as some kind of troglodytes.

 

[glenwolde]

I'm familiar with the details on that transaction and it doesn't look like your usual "pillage and burn". I think they'll be O.K.

 

[Buick]

I treasure my Starrett tools. As a civilian toolmaker for the DoD, I help prototype repair tooling for the hottest military aircraft in the galaxy. It really sucks to turn in your favorite U.S. made calipers and micrometers for calibration and have them replaced with some offshore brand.