Uhu Inc acquires The L.S. Starrett Company (2024)

Deal facts

Buyer: Uhu Inc
Target: The L.S. Starrett Company
Deal value: Not disclosed
Announced: 8 March 2024
Status: Completed
Sector: Industrials
Country: United States
Consideration: cash

Sources

SEC_EDGAR_8K

What we know

Weekly digest

Join Exit Mode Insider

Ten deal briefs a week, founder commentary, and the patterns worth paying attention to.

Join Exit Mode Insider, £12/mo

Deal timeline

1 update

23 May 2024CompletedClosed
Uhu Inc completes acquisition of The L.S. Starrett Company
Introductory Note. As previously disclosed, on March 8, 2024, The L.S. Starrett Company, a Massachusetts corporation (the “Company” or “Starrett”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Uhu Inc., a Delaware corporation (“Parent”) and an affiliate of MiddleGround Capital, and Unicornfish Corp., a Massachusetts corporation and wholly owned subsidiary of Parent (“
Source

OpinionExit Mode editorial

The announcement that Uhu Inc has completed its acquisition of The L.S. Starrett Company marks a definitive shift for a legacy industrial name. We see this as a classic case of a long-standing public entity moving to the private sector to escape the short-term pressures of the stock market. The deal, finalised in March 2024, involves a pure cash consideration, which signals that the buyer is willing to commit immediate capital without the friction of share-based exchanges. For the SME founder reading this, the move highlights how established industrial firms with strong cash flows often find more strategic freedom outside the public eye.

This transaction falls squarely within the Industrials sector, where operational efficiency and long-term capital planning matter far more than quarterly earnings beats. By taking Starrett private, Uhu Inc removes the need for public disclosure and allows management to focus on restructuring or reinvestment without the noise of Wall Street analysts. The cash structure suggests the buyer has secured the necessary financing upfront, likely through debt or private equity backing, to facilitate a clean exit for existing shareholders. There is no indication of an earn-out or contingent payment here, which simplifies the mechanics but places the full risk of future performance on the new owners.

We must note that while this deal crossed borders within the US, similar transactions involving UK or EU targets would trigger immediate scrutiny from competition authorities. The CMA or European Commission would assess whether the combination creates a monopoly or reduces competition in specific manufacturing niches. Although this specific deal is already complete, the regulatory path for such a going-private transaction in Europe often involves rigorous change-of-control covenants and potential anti-trust reviews. The absence of these hurdles in the US context allowed for a swift closure, but founders should not assume such speed is guaranteed elsewhere.

The clear lesson for any founder considering a sale is to evaluate whether your business model thrives under public scrutiny or requires the patience of private ownership. If your strategy involves multi-year transformation projects that the market cannot wait for, a cash deal with a private buyer offers a viable exit route. This week, review your current capital structure and identify which private equity groups or strategic buyers in your sector have recently executed similar going-private transactions to gauge their appetite and typical deal terms.

Editorial opinion. Not financial or legal advice.

Explore

Browse adjacent archives

Jump from this deal into the sector, buyer, deal type, and year views that carry the strongest contextual signal.

More Industrials deals More 2024 deals More going private deals More from Uhu Inc All M&A deals

Similar deals

Other Industrials M&A activity tracked by Exit Mode.

12 September 2024CompletedIndustrials

Tadano Ltd. to acquire Manitex International, Inc.

Tadano Ltd. and Manitex International, Inc. entered the Exit Mode archive.

Buyer: Tadano Ltd.
Target: Manitex International, Inc.
Deal value: Not disclosed
Deal type: going private

Read deal Industrials deals going private deals United States deals

5 June 2023CompletedIndustrials

Cube BidCo, Inc. to acquire CIRCOR International, Inc.

Cube BidCo, Inc. and CIRCOR International, Inc. entered the Exit Mode archive.

Buyer: Cube BidCo, Inc.
Target: CIRCOR International, Inc.
Deal value: Not disclosed
Deal type: going private

Read deal Industrials deals going private deals United States deals

24 March 2021CompletedIndustrials

OmniCable LLC to acquire Houston Wire & Cable Company

OmniCable LLC and Houston Wire & Cable Company entered the Exit Mode archive.

Buyer: OmniCable LLC
Target: Houston Wire & Cable Company
Deal value: USD 91,000,000
Deal type: going private

Read deal Industrials deals going private deals United States deals

7 October 2024In reviewIndustrials

OEP CAPITAL ADVISORS to acquire COMAU

OEP CAPITAL ADVISORS and COMAU entered the Exit Mode archive.

Buyer: OEP CAPITAL ADVISORS
Target: COMAU
Deal value: Not disclosed
Deal type: strategic acquisition

Read deal Industrials deals strategic acquisition deals In review deals

Buyer history

Uhu Inc

See every published Exit Mode archive entry where this buyer appears.

View buyer profile

Methodology

How this page is built

Layer 1 facts come from source documents, Layer 2 turns those facts into a readable narrative, and Layer 3 only appears where the editorial team flags a founder-relevant deal.

Back to the archive

Uhu Inc to acquire The L.S. Starrett Company

Deal facts

Join Exit Mode Insider

Deal timeline

Browse adjacent archives

Similar deals

Tadano Ltd. to acquire Manitex International, Inc.

Cube BidCo, Inc. to acquire CIRCOR International, Inc.

OmniCable LLC to acquire Houston Wire & Cable Company

OEP CAPITAL ADVISORS to acquire COMAU

Uhu Inc

How this page is built