Klein Tools

Klein Tools, a family owned opera-tion, has been manufacturing “the world’s finest hand tools” since 1857, and its products are known as the No. 1 choice among professional tradesmen. Similarly, Mumme Tools has been a family business since its inception in 1930, and its steel-forged tools have such a reputation for quality and durability that they are specified for use on many mine sites and defense contracts. So, when Klein Tools decided to expand, Mumme Tools’ pedigree made it an attractive partner.

“We now own 100 percent of Mumme Tools,” explains Mark Rapacki, channel sales manager, mining. “They are an 80-year-old family company that makes tools by steel forging, and that is right in line with what Klein Tools is about. With the addition of the Mumme brand of tools, we can expand what we offer to current Klein customers and expand our presence in the mining market. The Mumme brand is known for its quality because these are tools designed by miners for miners.”

With this acquisition, Klein Tools is supplementing its extensive product portfolio – a diverse range of pliers, screwdrivers and nut drivers, wire strippers and cutters, Fishtape/benders, and test equipment – with Mumme’s offering of chisels, wedges, digging tools, aligning tools, hammers, bars, masonry tools and levers. The company is confident this partnership is solid and will benefit both operations for the long term.

“With this acquisition, we gained immediate exposure to the Australian market – Mumme is distributing Klein’s line of tools in Australia now – but we’re also able to go after a bigger part of the mining industry in the United States,” Rapacki says. “But it’s not only that we are able to leverage Klein Tools with Mumme – we are going to make each other stronger in other ways. Primarily, we liked their culture – they are family owned and have a similar corporate morale – and that is important for our continued growth.”

Major Development
The quality-focused culture of Klein Tools stems from the fact that the company is owned and operated by the fifth and sixth generations of the Klein family. This sets the tone for a family-like atmosphere throughout the operation, says Mark Klein, director of North American sales. Even so, he explains, the company also values the members of the management team who are not part of the Klein family, because of their fresh outlook and ideas about the business.

“The company is family owned, but we like having outside management because they help us to develop best practices and give us new ideas for the business, all of which helps to foster our quality culture,” Klein says. Many of Klein Tools’ new ideas are focused on new product development, which is key to continued growth in its markets, he says.

“In the last three years, we have added more than 350 new products to our catalog,” Klein notes. “That is really unique in the industry – not many companies have that level of development. Our success in this area has been remarkable.”

“New product development is key for the mining industry, and that has been a constant focus at Mumme,” Rapacki explains. “Many of Mumme’s newest products focus on safety, such as pin punch tools. Mumme Tools is the only company that makes a tool that allows for a two-person operation during this application, which makes it much safer. Right now, these products are available in Australia, but they soon will launch in the United States.

“Tools that focus on safety are really in the forefront right now,” he adds. “Our customers and some trades are approving tools for use on specific jobs because they are made for specific applications.”

A Simple Plan
Klein Tools may be expanding into Australia with the acquisition of Mumme Tools, but that does not mean the company is removing its focus from the U.S. professional market or American manufacturing. In fact, its dedication to keep its operations in the United States is a point of pride for the company.

“The majority of our manufacturing is done in the United States because it allows us to maintain complete control and protect our competitive advantage in the marketplace,” Klein stresses. “We use secret techniques in our production that have been developed over the past 155 years. Our production and the quality we derive from it have helped us get into other market categories and expand internationally. We are proud to deliver durable, premium-quality products that are made in the U.S.A.”

Klein Tools does, however, have a major focus on international growth. The company has a market share of 80 to 85 percent in most of the professional trades it serves, Klein says, so he believes the main avenue for growth is via international exposure and possibly more international acquisitions.

“Our plan is simple – to continue to make high-quality durable goods for trade professionals and to look for other acquisitions,” Klein says. “Our heritage will keep us going.”