The title says it all at this point.
[OP]
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The title says it all at this point.
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https://www.starrett.com/news-events...rivate-company
MiddleGround Capital is a private equity firm. It'll be dismantled.
~mike
happy in my mud hut
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Not sure why you think it will be dismantled. From my reading it looks like MiddleGround wants to move forward with another respected name on their roster.Originally Posted by mike stenson
> https://www.morningstar.com/news/bus...rivate-company
From the link above:
Especially the comment on "reshoring" doesn't sound like dismantling the parts for quick cash. Reshoring is the process of moving overseas manufacturing back to home country soil.“MiddleGround is thrilled to be partnering with Starrett, a brand we have long admired, and a company that we have followed in the public markets for several years. Most of MiddleGround's Operations team gained familiarity with Starrett products over the course of their manufacturing careers, and we are excited about the opportunity to further position the company for its future on the front lines of innovation, advanced manufacturing and reshoring,” said John Stewart, Managing Partner of MiddleGround.
That is starting to be a common practice with "supply line" problems brought about in the past few years.
jtk
"A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty."
- Sir Winston Churchill (1874-1965)
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Because private equity firms are generally interested in turning a quick buck and nothing more. This is true of every area that private equity firms have gotten themselves into since the 80s.
We'll see, but I will be surprised if they don't ruin the company.
~mike
happy in my mud hut
Contributor
I agree with Mike....and the "Starrett quality" will take the first hit.
"What you see and what you hear depends a great deal on where you are standing.
It also depends on what sort of person you are.”
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Starrett quality took that hit years ago when they offshored many of their offerings.
Contributor
Yep, I found that out.
I've always bought the Starrett products still made here.
"What you see and what you hear depends a great deal on where you are standing.
It also depends on what sort of person you are.”
Contributor
Private equity firms generally load up the acquired company with a lot of debt which has to be serviced. That leaves little money for research, marketing and other needs of the company. The best you can hope for is that the private equity company eventually sells the acquired company to an entity that wants to build on the products and reputation.
I'd tell the employees to "look out". Private equity companies usually have to reduce expenses (read people) to service that debt.
Mike
Go into the world and do well. But more importantly, go into the world and do good.
I quit and became a full time woodworker a year after being bought by a company that got their funding from a private equity company.
Like said above, the company never had investment money on hand because it was getting eaten up by the investors returns. Once that investment firm had enough they left and our company got funding by another firm etc etc.
It COULD be that this investment firm is different. But in the latest business environment of stock buy backs and ceo or shareholder value ratio to employees going absolutely crazy... I doubt it. But hey anything can happen.
Yes, I have 3 phase!
Member
To woodworkers, it is merely sad, but to machinists, it is heart breaking. The metalworker side of me liked Mitutoyo over Starrett. To a Canuck, they are both imported tools.
Contributor
I prefer Mitutoyo also.
My gage blocks, dial indcators, digital calipers, all Mitutoyo.
"What you see and what you hear depends a great deal on where you are standing.
It also depends on what sort of person you are.”
Contributor
I was hired by a small privately owned corporation when my enlistment ended in 1976. 20 months later after being promoted to management, the company got into a financial bind due to the passing of the "certificate of need" national legislation and a well-known global corporation purchased us. A couple years later I transferred to Idaho. 4 years after arriving here, J&J sold us to GE. During my 34-year career until I awoke deaf forcing my retirement for safety reasons, I never had to look for a job and yet survived 4 Rifs. Not all corporate buyouts or mergers result in worsening product quality or elimination of positions.
Offshore quality can be as good as US made quality or Japanese quality. It's a matter of setting standards and being ready to pay for it. I have used Starrett tools professionally and personally. I hope they maintain their quality history.
Ken
So much to learn, so little time.....
Contributor
I used to work for GE (O&G before it got split off into Baker Hughes / GE)
GE stopped pensions for new hires in 2012. GE stopped adding to people's pensions in 2021. GE did a huge stock buy back in 2023 of 15 billion - their biggest yet. Congrats to all the shareholders! Sorry to all the GE employees who got a piddly raise.. it was a tough year. Maybe next year. GE decided to have stock buy backs vs pension payouts.
It's a changing world.. and not for the better.
Maybe I'm a pessimist or maybe I'm a realist, but I don't see quality of US goods ever going up w/ these super big companies unless something changes. And I don't have any optimism for large private companies either.
Yes, I have 3 phase!
Contributor
I guess it could be worse.
At least it wasn't Stanley B&D or Irwin that bought them.
"Life is what happens to you while you're busy making other plans." - John Lennon
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s/Mitutoyo/Starrett/g
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