P&F Industries, Inc. Acquires Exhaust Technologies, Inc.
P&F Industries, Inc. (NASDAQ: PFIN) today announced that effective July 1, 2014, it acquired all of the outstanding equity interests of Exhaust Technologies, Inc. ("ETI") through a merger of a newly formed subsidiary of P&F with and into ETI. ETI markets its AIRCAT pneumatic tools primarily to the automotive market. The total purchase price, taking into effect a working capital adjustment, consisted of approximately $10,377,000 in cash. The newly acquired company will operate under the control of P&F's subsidiary, Florida Pneumatic Manufacturing Corporation, located in Jupiter, Florida. The Company believes that this acquisition will be immediately accretive to earnings.
Richard Horowitz, P&F's Chairman, President and Chief Executive Officer, explained, "I am extremely pleased to announce the acquisition of Exhaust Technologies Inc. and its AIRCAT product line. This acquisition will enable us to become a larger factor in the automotive air tools industry, further expand our product offering in this sector of the pneumatic tool market, as well as giving our Continental Tools group the ability to use the acquired technologies in other tools in its existing and future product offerings. Lastly, we believe that consolidating ETI's operations into our Florida Pneumatic facility will generate cost reductions, as well as improve overseas purchasing power."
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