Danaher Corp and Cooper Industries yesterday agreed to sell their hand and power tools equal joint venture, Apex Tool Group, to private equity firm Bain Capital, for about $1.6 billion.

Apex Tool Group was created in 2010 by combining the tools division of Washington-based Danaher and Houston-based Cooper.

Sparks, Maryland-based Apex Tool is one of the world's largest makers of hand and power tools with brands like Lufkin, Crescent, GearWrench ratchets, and Belzer.

Its clients are from the do-it-yourself, manufacturing and assembly, automotive, aerospace, construction, and electronics sectors.

Apex Tool employs more than 8,000 people in 30 countries, and had net income of $134 million on revenues of $1.46 billion in 2011.

Danaher said that it expects the sale to generate after-tax net proceeds of about $650 million, while Cooper did not mention proceeds.

Both companies had put Apex Tool on the block in August, which attracted bidders like Bain Capital, and other buyout firms like Platinum Equity and American Securities in an auction.

This acquisition is Boston-based Bain Capital's second-biggest deal this year after it acquired a 50 per cent stake in Japan's biggest TV shopping channel Jupiter Shop Channel for more than $1 billion. (See: Bain Capital said to pay over $1 bn for half of Japan's biggest TV shopping channel)

The acquisition comes two days after Apex's rival, Stanley Black & Decker agreed to sell its hardware and home unit to Spectrum Brands Holdings for $1.4 billion in order to focus on its hand and power tools business (See: Spectrum Brands to buy Stanley Black & Decker's home business unit for $1.4 bn).

Cooper itself is going through an ownership change, with Eaton Corporation in May proposing to buy the company for $11.8 billion, while Danaher last month agreed to buy medical test maker Iris International in a deal worth about $341 million.