SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
_______________________
Date of Report
(Date of earliest
event reported): February 17, 1998
Snap-on Incorporated
(Exact name of registrant as specified in its charter)
Delaware 1-7724 39-0622040
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
10801 Corporate Drive, Kenosha, Wisconsin 53141-1430
(Address of principal executive offices, including zip code)
(414) 656-5200
(Registrant's telephone number)
Item 5. Other Events.
Snap-on Incorporated (the "Corporation") has made previous
disclosures, including without limitation in Note 11 of Notes to
Consolidated Unaudited Financial Statements in the Corporation's Quarterly
Report on Form 10-Q for the period ended September 27, 1997, with respect
to the Corporation's guaranty of certain obligations. On February 17,
1998, the Corporation issued a press release relating to this subject to
the following effect:
IMMEDIATE
Settlement in Texas Satisfies Snap-on Loan Guaranty
KENOSHA, Wisconsin - February 17, 1998 - Snap-on Incorporated and Tejas
Testing Technologies have completed an agreement, approved by the U.S.
Bankruptcy Court in Austin, Texas, that will fully satisfy Snap-on's
liability related to a loan guaranty by Snap-on of certain Tejas lease
obligations. The agreement allows for the allocation of funds in a
settlement reached among Snap-on, Tejas and the State of Texas related to
the cancellation of Texas' centralized emissions testing program in 1995.
The settlement provides for the payment of the remaining principal on the
guaranteed loan and for the reimbursement of principal and interest paid
to date by Snap-on on the loan. In addition to amounts already
appropriated by the Texas Legislature, the settlement includes an amount
expected to be appropriated in the next legislative session from which the
final settlement payments will be made by 2001.
Prior to the disposition of Systems Control, Inc. (SCI) by a subsidiary of
Snap-on in 1994, SCI's subsidiaries, Tejas Testing Companies, entered into
contracts with the State of Texas to perform centralized emissions testing
in certain metropolitan areas of the state. In 1995, the State of Texas
terminated the centralized testing program and Tejas subsequently
initiated a lawsuit with respect to the cancelled contracts and filed for
bankruptcy.
Snap-on Incorporated (NYSE: SNA) is a $1.7 billion leading global
developer, manufacturer, and distributor of tool and equipment solutions
for professional technicians, motor service shop owners, specialty repair
centers, original equipment manufacturers, and industrial tool users
worldwide. Product lines include hand and power tools, diagnostics and
shop equipment, tool storage products, diagnostics software, and other
solutions for the automotive and industrial service industries.
# # # #
Media contact: Investor relations contact:
Richard Secor Lynn McHugh
414/656-5561 414/656-6488
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
SNAP-ON INCORPORATED
Date: February 18, 1998 By: /s/ Susan F. Marrinan
Susan F. Marrinan
Vice President, Secretary
and General Counsel