) rose by a marginal 0.23% after the company on May 30 announced
the all cash acquisition of New Hampshire-based brake servicing
solutions provider, Pro-Cut International for about $42
Pro-Cut is a designer, manufacturer and distributor of the brake
servicing products including on-car brake lathes along with
relevant equipment and accessories for use in the automotive repair
industry. In the last fiscal, the company reported revenues of
about $24 million.
The decision to acquire Pro-Cut is a strategic move by Snap-on
and is a part of the company's ongoing strategic investments to
strengthen its Repair Systems & Information Group segment,
which contributed about 33% of the company's total revenue in
This segment consists of the business operations providing
diagnostics equipment, vehicle service information, business
management systems, electronic parts catalogs, and other solutions
for vehicle service to customers in the worldwide vehicle service
and repair marketplace. In the last reported quarter (first-quarter
2013), the revenues from the segment increased 6.7% year over year
to $262.7 million, primarily on gains in sales of diagnostics and
repair information products to repair shop owners and managers.
The acquisition of Pro-Cut perfectly complements Snap-on's
Repair Systems & Information Group segment's business, as
Pro-Cut's advanced brake servicing product line further augments
Snap-on's offering of productivity solutions for vehicle repair
facilities, including independent shops, national service chains
and OEM dealerships. Snap-on has been carefully considering
acquisitions to boost its business.
In the second quarter of 2013, the company had acquired
Challenger Lifts that primarily designs, manufactures and
distributes a comprehensive line of superior car lifts, jacks and
auto lift accessories to the automotive repair sector.
Snap-on Incorporated is a global provider of professional tools,
equipment, and related solutions for technicians, vehicle service
centers, original equipment manufacturers (OEMs), and other
Snap-on currently has a Zacks Rank #2 (Buy). Some other stocks
that can be considered at the moment include
Emerge Energy Services LP
Blount International Inc.
). While Gorman-Rupp and Emerge Energy Services carry a Zacks Rank
#1 (Strong Buy), Blount International has the same rank as
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