A thought experiment: will Leatherman Tool Group be sold?

[powernoodle]

I'm not predicting that Leatherman will be sold to an investment group or big corporation, but from an outsider's perspective its not the craziest thing that could happen.

Why?

1 - Leatherman has moved away its core principles, i.e., the production of simple, awesome and affordable multitools.  Of course, much of this is the natural evolution of a multitool company because after you release the PST, PST II, Kick, Fuse, Blast, Core and Wave, what else are you going to do?  Release them again?  And inflation, being what it is, makes it impossible to release a $29 Fuse these days.  Nonetheless, the very thing that got me into Leatherman MTs is long gone.  Yet I keep Chasing The Dragon.

2 - Multitool evolution can only take you so far.  Simplicity in design and manufacturing have their limits.  When Leatherman hit the apex of that arc  (<<pun!), what are they supposed to do after that?  The only place you can go is into supposed "premium" blade steel (something no one wants IMO), G10, magnets and new "colorways" (which sound better than new "colors").  Again, we can't really blame Leatherman for this because there is no where else to go after releasing the Wave+.  Can't go up.  Gotta go sideways.  If you look at the list of Leatherman products, past and present, you see that they have done an awesome job of wringing our every possible MT, knife and tool that the Leatherman brain trust can imagine.  https://en.wikipedia.org/wiki/Leatherman

3 - Chinese MTs.  Like a swarm of airborne drones flying over the border, Chinese MTs are flooding in on Amazon, Ali Express and elsewhere.  Quality MTs at sometimes 25% of the MSRP of a similar Leatherman product.  Sorry, Leatherman, but they are great.  Many have 88% of Leatherman quality and 100% of Leatherman utility for $30.  What else is Leatherman to do but shift its focus?  And these inexpensive Chinese MTs can easily experiment with non-Leatherman features, like 1/4" bit drivers - which are awesome.  Or finely serrated scissors, which are great.

https://www.amazon.com/dp/B0CSD2SF4R

4 - Leatherman is transitioning into what some call "lifestyle" products, and women are more prominently displayed in social media advertisements.  "Bayside" Micras in pink and green are a long way from the good old days. 

5 - The recent "lottery" or Vault "sale", which turned out to be no sale at all.  But at least they called us all Losers after it was over.  It got so bad the the Leatherman Facebook group now includes the term "Loser" in the group title.  Is this the future of Leatherman?  What's this have to do with the theory that Leatherman could be sold?  Not much, really.  Its just an example of the weird things going on at Leatherman that seem out of character - or at least contrary to the company values I think I once remembered.

5 - Tim Leatherman is 77 years old.  According to Leatherman's website, he has a son "Lee" who "runs the innovative gears behind The Garage."  Garage innovation?  It doesn't exist.  Consider Spyderco founder Sal Glesser at age 72.  For many years, his son Eric has been a designer and partner in the operation.  Basically the frontman.  Maybe there is something similar going on behind the scenes at Leatherman, but its not on public display.  Consider also Lynn Thompson, who founded the awesome Cold Steel knife company in 1980.  It was sold in 2020 to GSM Outdoors, though Lynn remained involved.  You cannot blame a man for turning his company into a giant pile of cash in his retirement years.  In fact, that may be the whole point of an innovative company in the first place.

6 - Tim Leatherman, with a ghost writer, is this year releasing The Leatherman Book: Stories, Lessons, and Advice from the Inventor of America's Original Multi-Tool.  If there was ever an epilogue or swan song to Leatherman - this would be it.

All of the pieces are there.  But these pieces are only an outsider's perspective.  Who knows what is going on at Leatherman HQ.  I'm not predicting that Leatherman will be sold in the next few years - but it should not surprise us if it happens.  Its the circle of life.

[charlie fox]

I think this is a fair assessment. Leatherman as a company has made a huge impact on the world but there's only so far that can be taken. And discontinuing popular line such as the Juice and Squirt has damaged the company's populartiy with enthusiasts.

[ThisAlarm7]

That's an astute assessment and well defended....I hope you're wrong. I especially hope it isn't gobbled up by private equity losers and run into the ground.

#3 is true, but also the most unfortunate point. I've seen some quality products from them but I'd never buy them, both because I want quality American brands and products to flourish and also because of extreme ideological antipathy toward the CCP. I'll leave it at that.

[LoopCutter]

I am sure LMTG has been approached, dressed up a few models with fancy pastel named colors, a new version of the WAVE+, pulled old stock from retailers to reintroduced at a later date, (create a shortage) and reintroduce. 

The comment, they repeat, “we listen to our customers”!  Or, the announcement of being the “lifestyle choice”, branding themselves at had top of the market.

Yet, I suspect, any potential buyer, is eyeing expiring patents, the name branding potential, and if they divide up segments of the business Will they sell for more than the whole.   Ex:  buy a PIE FOR $8, then cut into 8 pieces and sell for $3 a slice type of sale.

Regardless, consumers will loose, Oregon will loose, Portland will loose and employees will loose.

I will admit, LM seems to attract the under 30 crowd with color and products. Over the last three weeks I witnessed three very different examples.

First, a young mom with two kids walking the trail at Eagle Marsh, (a wetlands project), with a Skeletool clipped to her backpack/gadget mom bag.

Second, at grocery, a near 30 yo with a RED MICRA on her key chain, followed her out and saw her load items in her same color JEEP LIBERTY…

Third, at lunch, a smart looking young lady, with hard hat, safety vest and Carhart Brown lady cut vest, eating lunch, with a LM nylon sheath, with what I assumed was a bright SS REBAR on her hip attached to her belt. That was the matching color to her hard toe 6” work boots.

I thought to myself, wow, trends have changed, I use to notice guys at work sites with tools, now I checking accessories on the girls.

Guess which one I found to appear to be the most appealing???

If you selected the burnette!  You would have been correct!

[powernoodle]

The expiration of patents is a good point.   

[gadgetman7]

Those are good points and it’s the second time I’ve heard them. If it does sell, I hope it goes to a USA company. It’d be great if someone like GOAT tools or even Spyderco bought them but I doubt it will happen. I’m not sure what their market valuation is but it’s probably more than those companies could come up with.

[ThundahBeagle]

All good points and I'm gonna play counter-point to each of them:

1.) Core Principles: Yes, Leatherman has moved away from core values of good inexpensive tools or maybe they just expanded...check prices in original Cabela's catalog and solve for inflation.  Were they ever really inexpensive?  Also, one could argue, the Rev, Wingman, Sidekick tool set, and now the Bond and whatever they are calling the throwback Wave, are also sort of reissues of the original PST and wave for much less $

2.) Evolution:  yes they have experimented with different metals and materials.  That's what we asked for.  The PST and PST2 hurn our hands, so they inserted plasti-fiberglass, and then transitioned to rolled edges, which make the tools thicker.

Colorways (I agree.  That word is like "price point.". It's a color, and it's a price.  Maybe a price range.)  But with regards to colors, although I myself and a strict polish stainless steel guy, I understand the colors...why are we OK with different color Victorinox models, special editions of all kinds including National Parks and Company Logos, but are not OK with the same for Leatherman?  How many of us has recently purchased a truly plain stainless steel Yeti tumbler for their morning coffee/ commute to work?  No, they are cerracoated and we like that as it does give us a warmer, slightly more textured grip.

3.). Chinese MT's:  I won't but them.  Why are you?  Quality not quantity, and support for local comp and workers, in concentric circles from the point at which I live, outward.  China being the farthest place from me on the planet, and yes, as others have mentioned government and ideology I am opposed to, so, there.  I. Do. Not. Purchase Chinese MT's.  Even my ratchets and sockets and hand tools.  If I don't already have it, I'm on Faceplant Market book or CL to find a vintage Craftsman one.  Chinese made does happen, but only if nothing else is available

4.) Lifestyle product:  ok.  I'll take that over no more Leatherman and especially over no more US Leatherman.  See again #2 in terms of color (colorways)

5.) Vault -  I admittedly have no experience with this at all

5.) (second #5 in your post) Tim's son.  Well, truth is Victorinox was handed down in the family and on and on.  Will Leatherman be handed down?  I hope so.  Will Leatherman survive after being handed down?  We can only wait and see.  One thing is for sure, no matter how well it does after the transition, a certain percentage of us will rightly or wrongly claim " ever since Tim left us, his son (or tool company x) has just made all the stupid decisions and run the place into the ground!". We can only hope it stays in the family, and that Tim's son has a good handle on things or as was previously said, it goes to an USA company that keeps it a USA company.  If it crashes and burns, the tools we already have will be wonders of a past lost to time, and everything will go Chinese.  So, but no Chinese, and only buy Leatherman IF you want to make sure they are around in current form

6.) It's a book.  Tim is 77.  I don't see a problem with a retrospective.  Look what he built.  It's a story of American success.  I'm okay with that.  Doesn't mean there's no future.  How many coffee table books have been written about Victorinox Swiss Army Knives?

[Vadim]

And yet, Leatherman still doesn't have a multitool in its line that can beat the SwissTool Spirit in terms of functionality and the number of internal tools.

It simply doesn't exist.

[Huntsman]

Couple of things I never understood;
One was the 25 year warranty on the lower price range tools
Of course 25 year warranty is a fantastic selling point on your premium models eg the Wave, Charge, Arc etc
But for you budget line such as the Wingman, Rev, Sidekick, Bolster etc - Surely 10 years would be good enough and save LM money and therefore cost (ie price) for their customers.

I guess drawing the line somewhere would be tricky - eg Do keychain go 10 or 25 - I'd say 10 - What about the Bond and the Curl? 
But if you are going to have premium and budget lines - then make it so all the way!!

I'd love to know how much p.a. the warranty is costing LM - But it must be quite a bit!! And all that cost has to be built into the price of the tool.
For instance, how about that unusual free sharpening service on their new knife range? Great service .... but the cost?   

EDIT PS. I like their recent colour options on existing models - If it boost/revitalises sales, or even hits new markets/customers - Good for them!!   
It nearly made me buy a second pretty Skeletool!!  

[greenbear]

Powernoodle has made a very fair assessment of the situation.  With Tim Leatherman getting older and the market changing it is quite easy to see how things might go. I really dislike brands becoming 'fashionable & exclusive' and Leatherman have certainly pitched at the high end 'niche' market - but what else can be done in the face of a multitude of Chinese facsimile MTs, many of which are of high quality?

Things brings up a question of goods being copied worldwide. In the UK one can apply for a 'patent' which effectively gives the maker exclusivity for a design. The exclusivity of the design has to be ratified and then the item can carry the mark 'patent pending' on it. This means that should someone market a facsimile they are in breach of UK trading rules. With the march towards globalisation this has of course become a thing of the past, it is simply not possible to hold a Chinese manufacturer liable for making a copy of something, it would be too complex and expensive, and the Chinese are very good at producing good copies of western goods.

I dislike 'exclusive editions' and the various colour changes that Leatherman are rolling out don't particularly appeal to me, but I can see why they might want to go down that road.

[ThundahBeagle]

Couple of things I never understood;
One was the 25 year warranty on the lower price range tools
Of course 25 year warranty is a fantastic selling point on your premium models eg the Wave, Charge, Arc etc
But for you budget line such as the Wingman, Rev, Sidekick, Bolster etc - Surely 10 years would be good enough and save LM money and therefore cost (ie price) for their customers.

I guess drawing the line somewhere would be tricky - eg Do keychain go 10 or 25 - I'd say 10 - What about the Bond and the Curl? 
But if you are going to have premium and budget lines - then make it so all the way!!

I'd love to know how much p.a. the warranty is costing LM - But it must be quite a bit!! And all that cost has to be built into the price of the tool.
For instance, how about that unusual free sharpening service on their new knife range? Great service .... but the cost?   

EDIT PS. I like their recent colour options on existing models - If it boost/revitalises sales, or even hits new markets/customers - Good for them!!   
It nearly made me buy a second pretty Skeletool!!  

The 25 year warranty has been since the beginning or very near that.  Certainly having to do with the addition of date codes

Also, I don't think anyone who buys a Wingman, Rev, or Sidekick mich cares about the warranty...Stopped into the Animal Control office and saw they were issuing multi-tools.  CCCC types.  I showed them my Rebar and said I thought they should go American made.  Instead of Rebar or Wingman, they went with Sidekicks because they are so much less expensive.

I also said they should replace the CCCC flashlights with American made or at least, quality CCC.  Showed them my MagLite XL 50.  They haven't moved  on that front yet, but OK.  Maybe next year