Privately held Northern Tool, with $1 billion in sales, opens 100th store

Northern Tool + Equipment, founded by Don Kotula in 1981, has crossed 100 stores, $1 billion in sales and 2,500 employees.

December 19, 2017 at 11:05PM
(The Minnesota Star Tribune)

Burnsville.-based Northern Tool + Equipment has opened its 100th store, in Katy, Texas.

That makes 19 states for the retailer-manufacturer rooted in selling log splitters out of a garage in 1981.

The Kotula-family owned company has sales of more than $1 billion and employs about 2,500.

Founder Don Kotula is a native of the Iron Range. His father owned a scrap yard that recycled industrial debris such as mining equipment.

Kotual earned a business degree from the University of Minnesota at Duluth. He worked as a corporate accountant at a couple companies in the Twin Cities, and in heavy-equipment sales at Ziegler. Kotula left to strike out on his own during the 1981-82 recession, as Ziegler's business slumped.

Kotula started selling log-splitters, cylinders, valves and hydraulics, as family members mailed catalogues, took orders and shipped products.

Northern Tool opened its first store-showroom-warehouse in Burnsville, selling tools, tarps, snowplow parts, air compressors and more.

In 1991, Northern Tool launched a manufacturing business under the NorthStar brand, including log splitters, generators, pressure washers, and air compressors.

In recent years, Northern Tool revamped its retail footprint, introduced a series of higher margin private label brands, expanded its merchandising offerings and opened "Parts + Service" department. That strategy is built to "take the burden off weekend warriors who lack the time or expertise" to tackle maintenance and building projects.

about the writer

about the writer

Neal St. Anthony

Columnist, reporter

Neal St. Anthony has been a Star Tribune business columnist/reporter since 1984. 

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