Chapter 4. Doing Better Every Day: Actuant Aims and Delivers (Again and Again)

BACK IN DECEMBER 1999, JUST IN TIME FOR CHRISTMAS, BOB ARZBAECHER’S BOSS CALLED HIM IN FOR A CHAT. BOB WAS THE CHIEF FINANCIAL OFFICER OF APPLIED POWER, A MANUFACTURER OF INDUSTRIAL AND ELECTRONICS PRODUCTS BASED IN WAUKESHA, WISCONSIN. HIS BOSS WAS RICHARD G. SIM, THE CHAIRMAN AND CHIEF EXECUTIVE. HERE’S HOW BOB DESCRIBES THE ENCOUNTER: “HE TOLD ME HE HAD SOME GOOD NEWS AND SOME BAD NEWS. THE GOOD NEWS WAS THAT I WAS GOING TO GET TO BE THE CEO OF A NEW YORK STOCK EXCHANGE COMPANY. THE BAD NEWS WAS THAT THE COMPANY WAS GOING TO BE LOADED DOWN WITH DEBT.”

Applied Power planned to spin off its electronics businesses in a new entity called APW Ltd. As much of the parent company’s debt as possible would be dumped on APW, which would operate as the Actuant Corporation—an assortment of outfits manufacturing such products as industrial pumps, electrical tools, and equipment to lift truck cabins.