Snap-on in Agreement to Acquire Car-O-Liner
Repair equipment supplier Snap-on Inc. has entered into a definitive agreement to acquire Car-O-Liner Holding AB for about $155 million in cash to bolster its presence in the heavy-duty vehicle sector.
Based in Gothenburg, Sweden, Car-O-Liner, with trailing 12 month sales of about $95 million, is a leading global provider of collision repair equipment and information and truck alignment systems, Snap-on said.
鈥淐ar-O-Liner鈥檚 product offering and special expertise are important additions to our Repair Systems & Information Group, bringing greater capabilities in collision repair and strengthening Snap-on鈥檚 position in the heavy-duty segment,鈥 Snap-on chairman and CEO Nick Pinchuk said in a statement.
鈥淕iven trends in the collision space, including the need for greater precision, the requirement to accommodate new materials and the higher emphasis on shop efficiency, we believe this acquisition will further Snap-on鈥檚 progress along its strategic and coherent growth runway of expanding with repair shop owners and managers,鈥 Pinchuk said.
About 50% of Car-O-Liner鈥檚 business is in North America and 30% to 40% in Europe, David Leiker, an听analyst with Robert W. Baird & Co. Inc., wrote in a note to investors.
鈥淭his business is becoming more complex with changes in the structure of these vehicles along with new materials [听aluminum, carbon fiber] and growing use of electronics [crash detection and avoidance technologies],鈥 Leiker wrote.
The pending acquisition once completed would strengthen Snap-on鈥檚 market position in the heavy-duty truck segment, he wrote, 鈥渨hich is primarily serviced by Snap-on today through its Nexiq unit which sells repair tools, systems and information into the commercial truck repair market.鈥
The transaction is expected to close within 30 days, subject to closing conditions, the company said.
Snap-on is based in Kenosha, Wisconsin.