Pearl Abrasive Co. and Keystone Tools Acquired by Harbour Group

Nov 01, 2006, 00:00 ET from Harbour Group

    COMMERCE, Calif., Nov. 1 /PRNewswire/ -- Pearlman Corporation, the
 parent company of Pearl Abrasive Co. and Keystone Tools, announced today
 that is has been acquired by Harbour Group. Pearlman is a leading developer
 and supplier of branded, high-quality abrasives, diamond cutting products,
 and related products. Terms of the transaction were not disclosed.
     Pearlman was founded here in 1968. The company's products include a
 broad line of diamond cutting wheels, abrasives, chemicals, power tools and
 related products for stone fabricators, tile installers and construction
 contractors in both the residential and commercial construction markets.
 Pearlman sells its products through a network of independent distributors
 as well as through its own proprietary and branded distribution channel,
 Keystone Tools. Keystone is the fastest growing, direct to end-user,
 supplier of stone cutting and fabrication equipment in North America.
 Keystone markets both Pearl Abrasive and other branded products to
 end-users in the stone market through a distribution and sales network
 incorporating mobile trucks, catalogs and retail stores.
     Zack Pearlman, President of Pearlman, commented, "Our team has done an
 excellent job positioning both the Pearl Abrasive and Keystone businesses
 as leaders in the abrasives and diamond cutting tools market. Harbour Group
 has a keen understanding of our industry and we're fortunate to have them
 as a partner. Their long history of successfully growing companies like
 Pearlman will be a huge asset to us as we pursue our strategy."
     Having owned other cutting tool and abrasive businesses, the industry
 is not new to Harbour Group. Sam Fox, Harbour Group's Chairman and CEO,
 commented, "Pearlman is a really great business in a sector we understand
 well. The Pearl Abrasive brand is synonymous with quality, service and
 innovation, and as a result, Pearlman enjoys leading market shares in its
 served markets and a devoted and diverse customer base. We believe there
 are opportunities for further penetration of its existing markets, entry
 into new markets and geographies, and continued development and
 introduction of new products. Pearlman's markets are both large and highly
 fragmented, and we will aggressively pursue complementary acquisitions."
     Mr. Fox also emphasized that Harbour Group's acquisition will allow the
 company to continue to pursue its growth strategy. He commented, "Zack and
 his team created significant value through the innovative development of
 the highest quality products, a focus on superior customer service and the
 development of the Keystone distribution model. We intend to dedicate all
 our resources to continuing that legacy, and in particular, to extending
 the Keystone footprint."
     Harbour Group is a privately owned company based in St. Louis. Harbour
 Group and its operating companies are engaged in the manufacture and
 distribution of a wide variety of consumer and industrial products,
 including entertainment products, automotive enthusiast products,
 lubricating systems and equipment, auxiliary plastic processing equipment,
 and heat exchange equipment.

SOURCE Harbour Group