MELVILLE, N.Y. — P&F Industries, Inc. (NASDAQ: PFIN) announced Thursday that as of the close of business Aug. 13 through a newly-formed subsidiary, it has acquired substantially all of the assets comprising the business of Air Tool Service Company ("ATSCO"), an Ohio based corporation engaged in the manufacture and distribution of pneumatic tools and parts. The purchase price consisted of approximately $7,659,000 in cash and the assumption of certain payables and liabilities, and is subject to a post-closing working capital adjustment. The newly acquired company will be a wholly-owned subsidiary of P&F's Hy-Tech Machine, Inc. The Company believes that this acquisition will be immediately accretive to earnings.
Richard Horowitz, P&F's Chairman, President and Chief Executive Officer, stated, "We are pleased to announce the completion of our third acquisition of a pneumatic tool company in the past forty five days. ATSCO will bolster Hy-Tech's offering of industrial tools. We are eager to move forward with the planned integration of ATSCO with Hy-Tech, and anticipate synergistic savings and improved overhead absorption, as well as growth opportunities for our pneumatic tool companies in the future. As shown by our recent transactions, P&F is committed to improving growth and profitability, organically and through targeted acquisitions."
P&F Industries, Inc., through its two wholly owned subsidiaries, Continental Tool Group, Inc. and Countrywide Hardware, Inc., manufactures and/or imports air-powered tools sold principally to the industrial, retail and automotive markets, and various residential hardware such as fencing hardware and door and window hardware primarily to the housing industry. P&F's products are sold under their own trademarks and trade names, as well as under the private labels of major manufacturers and retailers.
ATSCO designs, engineers, reverse engineers and manufactures pneumatic tools for diverse applications.