Posted on April - 02 - 2011
Textron subsidiary acquires majority stake in Shanghai company
PROVIDENCE – Greenlee, a Rockford, Ill.-based subsidiary of Textron Inc., said it acquired a 51 percent stake in Shanghai Endura Tools Company Ltd. on March 30.
Shanghai-based Endura, established in 2004, is a hand tools provider for home centers, construction, industrial manufacturing and automotive channels, and employs about 140 people.
“The alliance also provides us with an opportunity to expand our presence in the Chinese tool market substantially, where we expect to increase sales significantly by leveraging Endura’s existing network and distribution structure of over 1,100 distributors,” said Scott Hall, president of the Textron Industrial Segment and Greenlee. The company did not disclose the financial terms of the agreement.
Zacks Equity Research noted that Textron’s across-the-board presence in commercial, manufacturing and industrial products, as well as financing operations, “protects it from specific business risk. The company is increasingly focused on its core manufacturing business and is gradually exiting from its commercial finance business through orderly liquidation and selected sales.”
However, Zacks noted the company remains exposed to defense spending cuts and that a slower recovery in the business jet market could lead to deferrals of orders.
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