FREEPORT, ILL. – The November news that Newell Rubbermaid Co. would purchase American Saw & Mfg. Co. signaled the growth of a conglomerate looking to boost its presence in the hand and power tool market.

American Saw, best known for its Lenox-brand hand tools and power tool accessories, is a family-owned company, founded in 1915. The deal, for $450 million in cash, adds several brands to Newell Rubbermaid's hand and power tool lines, a market segment the company has built in the last year.

Newell Rubbermaid purchased the remaining assets of American Tool Companies in April, 2002; it had previously owned 49.5 percent of American Tool's assets. The acquisition of American Saw adds to Newell Rubbermaid's tool products base, which includes American Tool Companies' Vise-Grip^® pliers, Irwin^® and Speedbor^® cutting tools, and Hanson^® drill bits, among others.

Joseph Galli, CEO of Newell Rubbermaid, said the purchase of American Saw & Mfg. adds to its consumer-based market and professional market for tools and hardware, represented by its Levolor^® Hardware Group. Galli was an executive with Black & Decker Corp. for many years before taking the reins of Newell about two years ago.

"Strategically, this acquisition helps position us as a global leader in the power tool accessories and hand tool market which represents a strong, long-term growth opportunity for Newell Rubbermaid," Galli said.

American Saw's 2001 revenue was $185 million on sales throughout four continents. Based in East Longmeadow, Mass., the company makes band-saw, hacksaw and jigsaw blades, drill bits, hole saws and utility knives, as well as hand tools and employs 800 people worldwide.