Six days ago, on August 23, Chervon (HK) Ltd. acquired the SKIL brand from the Bosch Power Tools division. This gives them complete control over the SKIL businesses in both North America and the European market. The new arrangement will see ownership of the rest of the global market phased on over a period of time. And yes, this means Chervon acquired Skilsaw as well. Barring approval by the antitrust authorities, the deal is done and has been approved by the Board of Directors of both Bosch and Chervon. As Chervon acquires SKIL, you can bet there will be a new influx of power tools that will shake up the market over the next few years.
“SKIL is an excellent complement to our existing brand portfolio. It will further strengthen our competitive position in the global power tool market. With SKIL onboard I am looking forward to continuing to grow and develop our global branding business.”Peter L.Q. Pan, the president of Chervon (HK) Ltd.
Some Background on SKIL
Founded in 1924, the SKIL brand is one of the most recognized in the world, though recently it has pitched itself towards more DIY-oriented tools. Remember that SKIL invented the world’s first electric SKILSAW in the early 1920s. When Skilsaw set to redefine its brand identity in 2016, it was clear the organization was getting back to its roots. 1960 saw SKIL expanding its business to Europe and then South America, Asia Pacific, and other countries in the 80s. In 1996, SKIL was acquired by the Bosch Group. It became one of the business units of the Bosch Power Tools division.
Yes, Chervon Acquired Skilsaw and SKIL
In 2016 Skilsaw redefined its brand so that it was separated from the DIY-level SKIL brand. Both brands, however, remain under the same umbrella, and Chervon acquired both brands in this deal.
The Chervon SKIL Acquisition History
The business cooperation between Chervon and Bosch can be traced back to 2003. That year, Chervon became one of the major OEM suppliers of Bosch Power Tools division. In 2007, the two companies partnered together and formed a joint venture in Nanjing known as Bovon Power Tools. Their focus was on benchtop products, further strengthening the strategic partnership. We saw this on our recent trip to China and tour of the Chervon manufacturing plant.
This acquisition of SKIL is the result of years of collaborative and an existing business partnership that has been established between the two companies over the past decade.
“We are confident that the SKIL business will benefit from Chervon. It will be able to take the best possible advantage of its opportunities for growth in this customer and price segment.”Mr. Henning von Boxberg, the president of the Bosch Power Tools division
Chervon Acquires SKIL and Others
In case you’re not aware, Chervon isn’t new to acquisitions and strategic positioning of its own brands. In 2007, Chervon launched its first professional brand, DEVON, targeting professional tool users in the Chinese market. 2013 marked the year Chervon acquired the century-old German power tool brand FLEX. This put them solidly in the European high-end professional power tool market. Finally, in 2014, Chervon launched the popular line of EGO 56V cordless tools. This was the world’s first 56V Lithium-ion battery-driven outdoor power equipment line. It launched in North America, Europe, and the Oceania markets. Other current brands include X-Tron and Hammerhead.
It will be interesting to monitor new Skil tools and Skilsaw tools over the next year and see what Chervon has in store for the brand. If the Skilsaw worm drive table saw is any indication, this could be a great year. As Chervon acquires Skil we also anticipate an expansion of the brand into more types of saws and tools in the coming years.
Editor’s Note: Thanks for the great tip from reader Martin!