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Northern Tool

Northern Tool + Equipment is an American family-owned retailer specializing in a wide range of tools, equipment, and supplies for DIY enthusiasts, contractors, and businesses, offering over 100,000 products from leading brands such as STIHL, Milwaukee, and Honda, as well as exclusive private labels like NorthStar and Powerhorse. Founded in 1980 by Don Kotula in his garage in Eagan, Minnesota, as Northern Hydraulics, the company launched its first catalog and store in 1981, initially focusing on hydraulic tools and log splitters. It rebranded to Northern Tool + Equipment in 1998 and expanded rapidly through catalog sales, an e-commerce platform launched in 1999, and brick-and-mortar stores, reaching its 100th store in 2017 and operating 140 stores across 24 states as of 2024, with continued expansion including new locations in Bryan, Texas, and Orange Park, Florida, in 2024. Today, owned by Kotula's sons Ryan and Wade, the billion-dollar enterprise operates four distribution centers in Minnesota, North Carolina, South Carolina, and Texas, employs thousands, and emphasizes customer service, community involvement, and programs like Tools for the Trades to support vocational education. The company's product categories include power tools, air compressors, generators, pressure washers, welding equipment, automotive supplies, and construction materials, available through its website, catalogs, and stores nationwide. Northern Tool has also grown its business-to-business division, Great Northern Equipment Distributing, Inc., established in 1983, and acquired entities like Jacks Small Engines in 2021 to broaden its offerings in outdoor power equipment. Recognized as a top workplace in for five consecutive years, it maintains a to quality, innovation, and global manufacturing partnerships, including facilities in since 2007.

History

Founding and Early Development

Northern Tool + Equipment traces its origins to 1980, when Don Kotula established the company in his garage in , under the name Northern Hydraulics. Initially focused on selling log splitters and , the venture catered to practical needs in rural and industrial settings. Kotula's background in sales informed this niche, emphasizing affordable, reliable tools for hands-on users. In 1981, Northern Hydraulics expanded by opening its first retail store in , and distributing its inaugural mail-order catalog to prospective customers. This dual strategy of physical retail and catalog sales laid the groundwork for accessible distribution, allowing the company to reach beyond local boundaries. Early operations emphasized direct engagement with buyers, fostering loyalty among farmers and DIY enthusiasts who valued straightforward sourcing of specialized equipment. A pivotal step in product diversification came in 1990 with the launch of the NorthStar brand, marking Northern ' entry into private-label manufacturing. This initiative enabled the production of branded items like generators and pressure washers, broadening appeal while maintaining cost efficiency. By 1998, as offerings extended far beyond to encompass a wider array of tools and machinery, the company rebranded to Northern Tool + Equipment to better align with its evolving scope. This period solidified core practices in catalog-driven sales and targeted marketing, driving steady growth through the 1990s.

Expansion and Milestones

In 1999, Northern Tool launched its website, northerntool.com, which marked a significant shift by enabling online sales and broadening customer access beyond its traditional catalog distribution. This digital initiative facilitated rapid expansion into the new millennium, as the company opened its 35th retail store that same year and continued to grow its physical footprint while integrating web-based ordering to meet evolving consumer demands. By , Northern Tool introduced the Kotula's and , a distinct brand targeting a wider audience with lifestyle-oriented and outdoor products, including gadgets and hard-to-find items inspired by founder Don Kotula's interests. This move diversified its offerings and expanded market reach, with the initial mailing reaching subscribers and generating supplementary revenue streams. The company's growth accelerated, culminating in $1 billion in annual sales by 2017, alongside the opening of its 100th store. Entering the , Northern Tool operated over 130 stores and employed more than 2,500 people by 2022, reflecting sustained scaling through strategies. Under President and CEO Suresh Krishna, who assumed leadership in 2020 and served until 2025, the company announced plans in 2022 to pursue further retail expansion, including additional store openings, alongside investments in to support skilled trades. In 2024, Northern Tool explored transformations, leveraging partnerships and to improve , speeds, and responsiveness to needs. Don Kotula passed away on January 20, 2024. In 2025, under CEO Wade Kotula, a revamp adopted a "gritty, witty" voice tailored to blue-collar professionals, yielding double-digit improvements in and increased digital engagement.

Operations

Retail and Distribution Network

Northern Tool + Equipment operates over 140 physical retail stores across the as of 2024, with a concentration in the Midwest and Southeast regions to serve DIY enthusiasts, farmers, and construction professionals. These locations, spanning states such as , , , , , , , and , emphasize accessibility through strategic placement near urban centers and rural areas, allowing customers to browse and purchase tools in person. The company's platform, accessible at northerntool.com, provides an extensive selection of more than 100,000 products from leading brands including and , catering to a wide range of needs from power tools to outdoor equipment. This online channel integrates seamlessly with physical stores, offering options for in-store pickup to combine the convenience of digital shopping with immediate availability. Supporting nationwide shipping, Northern Tool maintains three distribution centers in Savage, Minnesota; Arlington, Texas; and Fort Mill, South Carolina, with recent expansions and technology upgrades to accommodate the surge in online orders. These centers enable efficient inventory management and faster delivery times, leveraging data-driven supply chain optimizations implemented in the early 2020s. Catalog distribution remains a key supplementary sales channel, with annual mailings reaching millions of customers who prefer traditional for selections. By 2025, Northern Tool has adapted to post-pandemic trends through enhanced strategies, including upgraded payment systems for unified commerce and improved in-store experiences like curbside pickup and mobile support to meet evolving customer demands for flexibility.

Manufacturing and Product Brands

Northern Tool + Equipment operates two manufacturing facilities dedicated to producing light industrial equipment under its private-label brands. The primary facility, a 250,000-square-foot plant in , focuses on assembling and testing high-quality generators, pressure washers, water pumps, air compressors, log splitters, and engines for the NorthStar and Powerhorse lines. A second assembly facility in , , supports the private-label program by producing items such as water pumps, spot sprayers, hose reel kits, and additional log splitters, enabling cost-efficient scaling of volumes. The company's portfolio includes nine key private-label brands, which collectively account for approximately 40% of total sales. NorthStar, introduced in 1990 as Northern Tool's first private-label line, specializes in engines and generators designed for professional-grade reliability. Powerhorse offers portable power equipment, including engines, generators, and log splitters. Other brands encompass Klutch for tools and equipment; Strongway for farm and products; Roughneck for storage solutions; Bannon for hand tools; Ironton for welders and accessories; Ultra-Tow for trailers; and Gravel Gear for outdoor gear. These brands cover a broad range of product categories, from DIY supplies and automotive tools to apparatus and outdoor equipment. Northern Tool emphasizes rigorous and across its private labels, particularly in battery-powered and tools. Products undergo extensive real-world testing, often exceeding thousands of hours, to ensure durability and performance. In May 2024, the company launched an expanded Klutch tool line featuring brushless motors for enhanced efficiency, longer runtime, and up to 10 times the motor life compared to traditional models. This sourcing strategy balances in-house U.S. manufacturing for core items with partnerships from global suppliers to optimize costs while maintaining high standards.

Corporate Structure

Leadership and Ownership

Northern Tool + Equipment is a owned by the Kotula family, with no public stock listing. Don Kotula, who passed away in January 2024, built the foundation for the company's growth from a garage operation into a major retailer. His sons, including co-owners and Wade Kotula, have continued to steer the family enterprise. Suresh Krishna served as President and CEO from April 2020 to November 2024, bringing extensive experience in retail operations and . During his tenure, Krishna prioritized enhancements to the to improve efficiency and resilience amid global disruptions. He also drove retail expansion by opening additional store locations and innovating product offerings to support professional tradespeople. In late 2024, Wade Kotula succeeded Krishna as CEO, marking a return to direct family leadership at the executive level. As a son of and longtime co-owner, Kotula's appointment underscores the family's ongoing commitment to the company's direction. The family continues to guide strategic growth initiatives. Corporate headquarters are located in , where key decision-making occurs and the executive team is based.

Subsidiaries and Acquisitions

Northern Tool + Equipment expanded its portfolio into the sporting goods sector through the acquisition of The Golf Warehouse and The Sportsman's Guide in November 2012 from Redcats USA. These entities specialized in online retail of golf equipment and outdoor sporting gear, respectively, allowing Northern Tool to broaden its customer base beyond traditional tools and equipment. In August 2021, Northern Tool divested both The Golf Warehouse and to BHG Ventures, a private investment firm based in . This sale marked the end of Northern Tool's involvement in the sporting goods market, enabling a refocus on core operations in tools, equipment, and related services. The company established Great Northern Equipment Distributing, Inc. in 1983 as its wholesale division specializing in power equipment and parts. Shortly before the divestiture, in 2021, Northern Tool acquired Jacks Small Engines, a family-owned online retailer specializing in parts and services. The acquisition integrated Jacks' expertise in replacement parts for lawn mowers, chainsaws, and other outdoor power equipment, complementing Northern Tool's existing offerings in and repair. These acquisitions and subsequent divestitures reflect a strategic approach to diversification in adjacent sectors such as outdoors and engines, while adapting to evolving market priorities. Following the 2021 transactions, Northern Tool has pursued no major acquisitions, instead emphasizing and the integration of Jacks Small Engines to strengthen maintenance service capabilities. Great Northern Equipment Distributing and Jacks Small Engines are key active subsidiaries.

Sponsorships and Community Involvement

Motorsports Sponsorships

Northern Tool + Equipment has leveraged motorsports sponsorships to bolster brand visibility and engage its core customer base of DIY enthusiasts, farmers, and construction professionals, aligning the brand's tools with the hands-on, mechanical nature of racing. The company maintained a longstanding team sponsorship in NASCAR, partnering with Roush Fenway Racing and driver Erik Darnell for four years leading up to 2009, which provided consistent exposure through on-car branding during races. In a significant escalation, Northern Tool became the title sponsor of the NorthernTool.com 250 Nationwide Series race at the in 2009, held on , an event that promoted the company's tools to a broad audience via televised coverage and local tie-ins near its Milwaukee-area store. This sponsorship aimed to heighten awareness of Northern Tool's NASCAR involvement and capitalize on the sport's appeal to male demographics in trades and rural sectors, fostering connections with customers who value durable equipment for practical applications. After the 2009 race marked the end of its major event sponsorships, Northern Tool transitioned to targeted collaborations rather than ongoing race entitlements. In 2022, it partnered with NASCAR icon and , donating over $20,000 worth of power tools and welding equipment to support student build programs that emphasize trade skills, further reinforcing the brand's DIY and professional themes through motorsports heritage. These sponsorships generated substantial media exposure during their active period, including national broadcasts that amplified Northern Tool's reach among motorsports fans, contributing to enhanced brand recognition in competitive retail markets.

Philanthropy and Workforce Development

Northern Tool + Equipment has demonstrated a commitment to through targeted donations supporting and skilled trades training. In 2022, the company concluded the academic year by donating $20,000 worth of professional-grade tools to four high school trades programs across the , including schools in , , , and , to equip students with essential resources for hands-on learning in , automotive, and fields. This initiative underscored Northern Tool's focus on fostering the next generation of trades professionals by providing practical tools that bridge classroom instruction with real-world application. Building on this effort, in 2025, Northern Tool launched the "Legendary Build" project in partnership with and , donating a 2025 Nightster and professional-grade tools from both brands to students at LaVergne High School in . The nine-month challenge tasks students with constructing an XR750-inspired flat track , set for completion by June 2026, while offering mentorship from racing experts to enhance skills in mechanics, fabrication, and project management. This program aligns with the company's values of hands-on expertise, aiming to inspire and prepare young workers for careers in the skilled trades through immersive, collaborative experiences. Northern Tool maintains ongoing involvement in workforce development by donating tools and equipment to nonprofit organizations and technical schools nationwide, including a February 2025 donation of welders, cutters, small engines, and safety equipment to the Hubbard County Developmental Achievement Center in to support programs for individuals with disabilities. In July 2025, the company made a $20,000 contribution of tools, including tables and kits, to trades programs at four public schools in , , , and , as well as support to Feed My Starving Children enabling over 140,000 meal servings. These efforts extend to partnerships with vocational institutions and programs, where the company provides equipment, cutters, and safety gear to support training in high-demand trades like and automotive repair. By prioritizing such initiatives, Northern Tool reinforces its dedication to building a robust of skilled labor, ensuring communities have access to quality training resources that promote long-term .

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