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02.2.24

Diamond Blade Warehouse's acquisition of Peak Toolworks was completed Dec. 13, 2023, in partnership with Granite Creek Capital Partners, L.L.C. and Canterbury Ventures, L.L.C., with additional financing provided by Hidden River Strategic Capital and Muzinich BDC, Inc.

Goldberg Kohn corporate attorneys Denise Caplan and Ross Friedman represented Granite Creek in the acquisition side transaction and commercial finance attorneys Emily Edsenga and Jayne Chorpash represented Granite Creek in the loan side of the transaction.

Peak Toolworks joins Diamond Blade Warehouse (DBW) under the DBW Holdings umbrella. Both companies will remain dual operating businesses.

Granite Creek and Canterbury, the investment arm of James M. Farrell and W. James Farrell, acquired DBW in June 2021. Together, they constitute a controlling interest in the company. In conjunction with the Peak Toolworks acquisition, W. James Farrell will continue as the Chairman of DBW Holdings and James M. Farrell will lead the consolidated day-to-day operations as CEO. W. James Farrell was the longtime Chairman and CEO of Illinois Tool Works, leading the business through numerous acquisitions and billions of dollars of shareholder value creation.

In a company press release, Ken Kruger, Director at Granite Creek, said: “We are grateful for the partnership we have fostered with the Farrells since our joint acquisition of DBW in 2021. We have been impressed by their methodical implementation of operational improvements and growth initiatives at DBW, and are confident in their ability to drive further value creation at Peak.”

Headquartered in Vernon Hills, Illinois, DBW generated approximately $100 million in revenue in 2023. It is a leading direct seller of a full range of diamond cutting tool products for a variety of applications. It has the largest product line in the diamond tool industry and more than 30,000 active customers in the United States, South America, Europe, Asia and Australia. The company’s products are used to cut and finish a variety of materials and end markets, including concrete and masonry, concrete pavers and hard brick, tuck-pointing, tile, granite and marble.

The acquisition of Peak Toolworks, a diamond and carbide precision cutting tool manufacturer and servicer, expands DBW Holdings’ ability to provide industry-leading products to customers in attractive end-markets, including infrastructure, construction trades, building products, automotive and manufacturing.

DBW has around 400 employees and 15 locations following the Peak acquisition.

In a recent interview following the acquisition, CEO Jim Farrell told Mergermarket that DBW could acquire blade suppliers as a part of its growth strategy. Ideal targets would help expand the product line into wood, composites, food and beverage, carpeting and flooring and other end markets. He also said that Peak represented a sizeable acquisition for DBW, but declined to disclose specific financial figures.

In the same interview with Mergermarket, Peter Lehman, co-founder and partner at Granite Creek, said that Granite Creek does not have imminent plans to exit DBW. Farrell and Lehman agreed that a typical five-to-seven-year holding period is not a requirement for the company and its ownership tenure will be flexible.