US professional, medical, industrial and commercial solutions provider Danaher Corp (NYSE:DHR) and Irish electrical components and tools maker Cooper Industries Plc (NYSE:CBE) said on Wednesday they had struck a definitive deal to sell their 50/50 joint venture Apex Tool Group LLC to private equity firm Bain Capital LLC for some USD1.6bn (EUR1.2bn).
The transaction is seen to be wrapped up in the first half of next year, after it is cleared by regulators.
Danaher expects after-tax net proceeds from the deal to amount to some USD650m.
News agency Bloomberg had reported on 20 September, quoting an unnamed source, that the parties were in advanced negotiations on a potential transaction in which Bain Capital had emerged as a leading bidder and which might carry a price tag in the range between USD1.5bn and USD1.8bn.
Apex Tool, which specialises in tools manufacture, is headquartered in Sparks, in the US state of Maryland. The company was set up in 2010 as a result of the amalgamation of Danaher Tool Group and Cooper Tools, the former tool operations of its current shareholders. Apex Tools is owner of over 30 brands, including Crescent, GearWrench, Armstrong and Weller. The company operates in more than 30 countries via a 7,600-strong staff.