Festool Parent (TTS) Buying Sawstop

[Charles P. Wright]

Interesting news, I wonder what the future holds.

http://www.sawstop.com/company/news/...es/sawstop-TTS

SawStop to be Acquired by TTS Tooltechnic Systems

06.26.2017
​Tualatin, Oregon – June 26, 2017: SawStop today announced the acquisition of SawStop, LLC by TTS Tooltechnic Systems, a third-generation family-owned company based in Wendlingen, Germany. The TTS family of companies includes Festool, Tanos, Cleantec and others, and employs more than 2,500 people around the globe.
“We are proud to join a company with a shared passion for customer safety, product quality and meticulous engineering,” said SawStop’s President, Dr. Stephen Gass. “Speaking for our entire team in Tualatin, Oregon and across North America, we are excited to join with TTS to bring safer woodworking to more people through new tools and in new markets around the world. With a family like TTS at our side, I can’t wait to see what we will accomplish together.”
The acquisition is expected to be completed in July 2017. SawStop’s current management team will continue to operate the company out of its Oregon headquarters.

[Kevin Smira]

Can't put a price on safety for sure...but, does sawstop now become infinitely more expensive???

[Victor Robinson]

Wow. Many will see this as two evil empires coming together. As a fan of both companies, I'm intrigued but concerned as well. Is it a way for TTS to simply acquire the rights to SS technology, or is it further about them getting into the stationary tool business? Or will they kill off/ignore the larger saws and focus on bringing the safety to their wheelhouse (portable tools)?

[jack duren]

They should remain the same.Quality is good and there is really nothing to do but sell...

[Darcy Warner]

Festool, festo, use to make stationary machinery. Everything is always for sale at the right price.

[Victor Robinson]

Festool, festo, use to make stationary machinery. Everything is always for sale at the right price.

Yes they did. You think they're eyeing a return to the premium end of the stationary market?

[Darcy Warner]

Not from what I was told 6 months or so ago, but I know they are doing a lot of growing here in the US, wanting to assemble tools here and more, but I haven't had a chance to talk to anyone I know down there for a while.

[Ben Rivel]

Boy this news is moving fast!

[Victor Robinson]

Not from what I was told 6 months or so ago, but I know they are doing a lot of growing here in the US, wanting to assemble tools here and more, but I haven't had a chance to talk to anyone I know down there for a while.

Interesting. A couple of options stand out to me:
1) It's a great set of patents to have in your portfolio and a big fat middle finger to one of those other German companies. Let Sawstop continue functioning as they are and continue producing Asian-manufactured tablesaws. Think about bringing their technology to your other products, but that's not really the focus.

2) Switch up Sawstop's focus to the jobsite saws and tools. Aggressively bring their tech to your other products if you can (e.g. CMS). Change their branding and cosmetics/aesthetics to better match Festool's.

3) Enter the stationary business again but with the exclusive safety feature, possibly shifting production to Europe or USA and commanding a higher price. Perhaps trying to get at some of Hammer/Felder or Minimax slider and bandsaw customers.

[Mike Henderson]

Wow, that's some news. But it's a smart move for SawStop. Their patents are going to expire in a few years and this gives them some real corporate backing.

And it allows Gass and the other investors to cash out.

Mike

[Tim Janssen]

...............

And it allows Gass and the other investors to cash out.

Mike

You're most likely right. I don't think that it was Gass's idea to get into the manufacture of table saws when he started developing the safety feature.
He was more or less forced into that when nobody appeared interested enough to spend the money to incorporate the safety into their saws.

Tim

[Matt Melville]

From what I've read, festool only bought sawstop. The patents for the safety device on sawstop are held by another llc owned by Gass.

[Dave Sabo]

From what I've read, festool only bought sawstop. The patents for the safety device on sawstop are held by another llc owned by Gass.

And where did you read that ? Everything I've seen is very cryptic and none of it discloses any detail about the transaction other than Gass has confirmed a sale.

I cannot see TTS only purchasing a company that has only three products and outsources those to an Asian jobber ? Why would they need or want that ? They aren't in the Asian outsourcing game. The value is in the IP ! If TTS isn't securing that, then they aren't as smart as they appear.

[Andy Giddings]

From what I've read, festool only bought sawstop. The patents for the safety device on sawstop are held by another llc owned by Gass.

Patents are sometimes the most valuable (or overpriced?) part of a company so not surprised by this

[Andy Giddings]

And where did you read that ? Everything I've seen is very cryptic and none of it discloses any detail about the transaction other than Gass has confirmed a sale.

I cannot see TTS only purchasing a company that has only three products and outsources those to an Asian jobber ? Why would they need or want that ? They aren't in the Asian outsourcing game. The value is in the IP ! If TTS isn't securing that, then they aren't as smart as they appear.

Depends - if they purchased a right to use (exclusive possibly) then they get the benefit without owning the IP (which can often be ridiculously priced)