FOR IMMEDIATE RELEASE:

Western Forge Sold to Ideal Industries

DENVER, Colorado (January 5, 2010) - Keith McAslan, a Partner at CxO To Go, was instrumental in the successful sale of Western Forge to Ideal Industries. As the interim CFO, McAslan, a Partner at CxO To Go with CFO and private investment transaction experience, guided the management team through the sale and due diligence process completing the sale from prospective buyer presentation to close within 60 days.   

"Keith McAslan [of CxO To Go] joined me as CFO for a distressed hand tools business in desperate need of financial leadership. Keith's experience leading turn-arounds within private equity organizations allowed him to make an immediate impact. Our challenge was to quickly position the company for sale. McAslan was instrumental in dissecting the financial drivers of the business and identifying improvement areas that deliver quick returns. Because of Keith’s effort and expertise we were successful in securing a strategic buyer in record time at an attractive price.

Keith is as comfortable leading teams as he is digging into the details. He is a very approachable, hands-on leader that is able to quickly assess situations and activate corrective action plans. This deal could not have been done in the compressed timeframe without Keith McAslan's leadership." Mark A. Gold - President & CEO Western Forge  

January 04, 2010 1:07 PM - WAYNE HEILMAN  - THE GAZETTE

Ideal Industries Inc. has agreed to buy Colorado Springs-based Western Forge from Paris, Ky.-based MW Universal Inc. just two years after MW paid $40 million for the hand tool manufacturer.

Terms of the latest transaction were not disclosed, although Ideal said the purchase includes Western Forge’s 345,000-square-foot plant off Garden of the Gods Road. While Ideal will not complete the purchase until the end of this month, the company has already taken over management of Western Forge and named Randy Thompson, a 22-year Ideal employee with a broad range of manufacturing, operations and management experience, as general manager of Western Forge.

The sale comes after a difficult year for Western Forge. The company eliminated 75 positions in 2009 — 20 percent of its work force at the time — because of declining sales. The job cuts included a second round of layoffs by the company in less than a year. However, sales improved for Western Forge in the fourth quarter and the company hired temporary workers in December to fill orders, boosting its work force to about 400, said Fred Radtke, the company’s vice president of sales.

Ideal officials said they acquired Western Forge as part of a strategy to expand the company’s reach into the consumer market. Ideal primarily makes and sells professional-quality tools used in the construction, maintenance, communications and manufacturing industries.

“The acquisition of Western Forge represents another significant step in the Ideal strategy to broaden our internal product design and American-made manufacturing capabilities,” said Jim James, Ideal’s president and CEO. “An additional benefit is that we will now expand our presence among the general trades where Western Forge has a strong customer base and where we see significant opportunities for growth with other Ideal products.”

MW Universal officials were not available for comment. The company still owns General Aluminum Forgings Inc., a Colorado Springs-based company it bought in 2006 that makes parts used in engines, landing gear and other aircraft components.

Sycamore, Ill.-based Ideal was founded in 1916 and has grown into an international manufacturer and distributor of connectors, testing equipment, tools and supplies mostly for the electrical, communications and data transmission industries. The privately held company employs 1,200 worldwide.

Western Forge makes screwdrivers, pliers and other hand tools for a variety of major retailers. The company was founded in 1965 in Defiance, Ohio, and moved a year later to Colorado Springs. It had been owned for much of its existence by Emerson Electric Co.

CxO To Go is national professional services company headquartered in Denver, Colorado that provides on-demand C-Level expertise and best practices to client companies on a part time, flexible, and affordable basis. Contact CxO To Go at 888-745-8516, www.cxotogo.com, or This e-mail address is being protected from spambots. You need JavaScript enabled to view it to discuss your business needs.

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