Klein Tools recently announced the acquisition of Pennsylvania-based General Machine Products Company (GMP). GMP is a supplier of specialty cable placement tools and equipment for the utility, data, and telecommunications markets. In addition, Klein acquires General Machine Products’ European subsidiary and facility, CBS Products.
“GMP is very appealing to Klein Tools as we continue to expand our U.S. manufacturing presence. GMP and Klein Tools have much in common, including loyal customers, go-to-market strategies, and reputations for high-quality products. We believe our combined resources will present additional growth opportunities, and we’re excited to welcome GMP to the Klein Tools family.”
Thomas R. Klein, Sr., Chairman
Our Take
Acquisitions can often be double-edge swords with a mix of winners and losers – and that doesn’t necessarily mean employees, although it certainly can. If an acquisition doesn’t really align with a company’s strategy for revenue and growth, it can be a drag on profitability, a distraction to management, and a danger to jobs. Conversely, the right acquisition can increase profits, better serve the customers, and develop more employment opportunities in the company. Fortunately, it looks like Klein’s acquisition of GMP is the latter.
It’s not simply the fact that the two companies have complementary product offerings that make this a coherent pairing. Perhaps most importantly, both companies have been family-owned and operated for generations. Although we don’t know specifics about each companies’ culture, the shared pedigree almost certainly means the transition can be much smoother than had a huge conglomerate gobbled up a smaller player and imposed a stuffy bureaucracy. We’re making a lot of assumptions, of course, but let’s hope that’s the case.
Klein Acquires General Machine Products – Brass Tacks
Although the terms of the deal aren’t available, the benefit is clear: from cable lashers, blocks, aerial tools, pole line hardware, and FO cable placing accessories to underground equipment, general tools, gauges, and safety products, Klein Tools can now serve its customers even better by becoming a one-stop shop not only for service and mid-sized installations but also for large-scale installations, as well.
