GreatStar Tools USA has announced today that they will have acquired the Shop-Vac corporation, which is perhaps the best-known wet/dry vacuum system brand on the market.
As you might recall, Shop-Vac recently laid off most of their employees as the company was shut down and all parts were put up for sale.
GreatStar Tools USA is a subsidiary of Hangzhou GreatStar Industrial Co. LTD., based in China, has a portfolio of other USA-based brands, such as Arrow Fastener, Pony, Jorgensen, Goldblatt, and Prime-Line, and they also produce tools for many other tool brands and private labels.
The company has announced that it acquired substantially all of the assets of the Shop-Vac Corporation. As part of the arrangement, GreatStar will reopen Shop-Vac’s Williamsport, PA factory and hire back a number of employees who were laid off when the factory closed in September 2020.
At this time, the plan is for GreatStar to reestablish and expand Shop-Vac’s industry leadership in the workshop vacuum market, utilizing a mix of both Asian and USA-based manufacturing.
GreatStar says that they will prioritize restoring Shop-Vac’s distribution in the US, including [at] big-box retailers, major home centers, and hardware stores.
Finally, they add that:
Shop-Vac also adds core competencies to GreatStar’s manufacturing and operations, including expertise in injection molding; tool and die making; and electrical, industrial and polymer engineering capabilities.
Discussion
This is a very interesting development, and good news in my opinion.
It’s surprising, as I had thought Shop-Vac was beyond saving, once the third party liquidation company came in and listed all of the equipment and machinery for sale.
GreatStar has saved and acquired several other USA-based brand names, such as Pony and Jorgensen, as well as Goldblatt and Arrow. Their hand tools are of decent quality, and can be found at home centers under private label branding such as Husky and Kobalt.
With this arrangement, GreatStar is reopening Shop-Vac’s Williamsport, PA factory and hiring back “a number of employees” who lost their jobs 3 months ago in September.
It will be interesting to see if and how the Shop-Vac acquisition will also bolster GreatStar’s breadth of experience and capabilities beyond shop vacuums.
We’ll follow this story and any new developments that arise. It will be interesting to see what happens, and also if GreatStar can avoid or reverse the problems that led to Shop-Vac’s seemingly abrupt collapse.
