Enerpac Tool Group Corp. is a premier industrial tools, services, technology, and solutions provider serving a broad and diverse set of customers and end markets for mission-critical applications in more than 100 countries.
The company’s businesses are global leaders in providing high pressure hydraulic tools, controlled force products and solutions for precise positioning of heavy loads that help customers safely and reliably tackle some of the most challenging jobs around the world.
The comp...
Enerpac Tool Group Corp. is a premier industrial tools, services, technology, and solutions provider serving a broad and diverse set of customers and end markets for mission-critical applications in more than 100 countries.
The company’s businesses are global leaders in providing high pressure hydraulic tools, controlled force products and solutions for precise positioning of heavy loads that help customers safely and reliably tackle some of the most challenging jobs around the world.
The company has one reportable segment, the Industrial Tools & Services (‘IT&S’) Segment. The IT&S segment is primarily engaged in the design, manufacture and distribution of branded hydraulic and mechanical tools and in providing services and tool rental to the refinery/petrochemical; general industrial; industrial maintenance, repair and operations (‘MRO’); machining & manufacturing; power generation; infrastructure; mining; and other markets.
The company’s businesses provide an array of products and services across multiple markets and geographies, which results in significant diversification. The IT&S segment and the company are well-positioned to drive shareholder value through a sustainable business strategy built on well-established brands, broad global distribution and end markets, clear focus on the core tools and services business, and disciplined capital deployment. A portion of the company’s revenues is derived from customers in the midstream and downstream oil & gas industry.
Business Model
The company intends to grow through execution of its organic growth strategy, focused on key vertical markets that benefit from long-term macro trends, driving customer driven innovation, expansion of the company’s digital ecosystem to acquire and engage customers, and an expansion in emerging markets, such as the Asia Pacific.
In March 2022, the company announced the start of its ASCEND transformation program (‘ASCEND’). ASCEND’s key initiatives include accelerating organic growth strategies, improving operational excellence and production efficiency by utilizing a Lean approach, and driving greater efficiency and productivity in selling, general and administrative expense by better leveraging resources to create a more efficient and agile organization.
In June 2022, the company approved a restructuring plan in connection with the initiatives identified as part of the ASCEND transformation program to drive greater efficiency and productivity in global selling, general and administrative resources.
Business Segments
Industrial Tools & Services Reportable Segment
IT&S is a global supplier of branded hydraulic and mechanical tools and services to a broad array of end markets, including refinery/petrochemical; general industrial; industrial MRO; machining & manufacturing; power generation; infrastructure; mining; and other markets.
The company’s primary products include branded tools, cylinders, pumps, hydraulic torque wrenches, highly engineered heavy lifting technology solutions and other tools. Examples of the company’s products include high-force hydraulic and mechanical tools (cylinders, pumps, valves, bolt tensioners, specialty tools and other miscellaneous products), which are designed to allow users to apply controlled force and motion to increase productivity, reduce labor costs and make work safer and easier to perform. These tools operate at very high pressures of approximately 5,000 to 12,000 pounds per square inch. With the company’s products used in a wide variety of end markets, they are often deployed in harsh operating conditions, such as machining, infrastructure maintenance and repair, and refining, and petrochemical production, where safety is a key differentiator. As a result, the company holds itself to a safety standard to protect both the company’s employees and those using the company’s products and services.
On the services side of the segment, the company’s highly trained technicians provide maintenance and manpower services on customer assets to meet their specific needs including bolting, machining, and joint integrity. The company also provide rental services for certain of the company’s products.
The company’s branded tools and services are primarily marketed through the ENERPAC, HYDRATIGHT, LARZEP & DESIGN and SIMPLEX brand names.
The segment delivers products and services primarily through the company’s global network of distributors, as well as direct sales to OEMs and select end users. Examples of industrial distributors include W.W. Grainger, MSC and Blackwoods.
Other Operating Segment
Cortland Biomedical is a full-service biomedical textile product development company and represents the Other operating segment. Cortland Biomedical does not meet the quantitative or qualitative thresholds to be considered a reportable segment, and since the business is not closely related to the IT&S segment, results are not aggregated to be included in the results of the IT&S reportable segment. On July 11, 2023, the company completed the sale of the Cortland Industrial business.
International Business
The company’s products and services are generally available globally, with the company’s principal markets outside the United States being Europe, the Middle East and Asia. In fiscal 2024, the company derived 38% of its net sales from the United States, 29% from Europe, 15% from the Middle East, 10% from Asia and 8% from other geographic areas.
Seasonality
While the company typically experiences a stronger second half to the company’s fiscal year (year ended August 2024), the company’s consolidated sales are not subject to significant seasonal fluctuations.
Research and Development
The company's research and development costs were $12 million in the year ended August 31, 2024 (fiscal 2024).
History
The company, a Wisconsin corporation, was founded in 1910. It was incorporated in 1910. The company was formerly known as Actuant Corporation and changed its name to Enerpac Tool Group Corp. in 2020.