Snap-on Incorporated NEWSRELEASE
Release: IMMEDIATE
Snap-on Incorporated Completes Acquisition of Sandvik Saws and Tools
KENOSHA, Wis.-- September 30, 1999 -- Snap-on Incorporated (NYSE: SNA) announced
today it has completed the acquisition of the Sandvik Saws and Tools business,
formerly an operating unit of Sandvik AB. The acquisition was accounted for as a
purchase and is expected to be neutral to Snap-on's earnings per share in 1999
and accretive to earnings per share thereafter.
On April 22, 1999, Snap-on announced the signing of a definitive agreement to
acquire Sandvik Saws and Tools for approximately US$400 million (SEK 3,300
million) in cash. The purchase includes all facilities, a number of brand names
and trademarks, and certain other assets and liabilities. Sandvik Saws and Tools
has been renamed Bahco Group AB.
"This addition represents an exciting complementary fit for Snap-on," said
Robert A. Cornog, Snap-on chairman, president and chief executive officer. "We
share a common focus on the professional tool user, and both companies are
well-recognized for innovation and high-quality products. Together with Bahco,
we increase scale and expand our position as one of the world's largest hand
tool manufacturers. In addition, the combination creates a solid platform for
growth on three continents." Snap-on's pro forma sales breakdown, including the
acquisition, is 60 percent in the United States and 40 percent outside the
United States.
"Snap-on has built a leadership position by providing value and quality to
professional technicians who use tools on a daily basis," Cornog said. "With
Bahco, we create a powerful worldwide combination capable of delivering, through
multiple channels, value solutions to more segments of the professional tool
industry, including two large applications--construction and electrical."
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Snap-on Incorporated
P.O. Box 1430 - Kenosha, WI 53141-1430 - 414-656-5200
"We are excited about the opportunities our united strengths bring to the
marketplace," said Bahco president, Goran Gezelius. "Snap-on has a clear vision
of the potential for this business, and we look forward to the benefits this
combination creates."
The Bahco Group AB will continue to be based in Sandviken, Sweden. The group
employs approximately 2,400 people. Of those, approximately 1,000 employees are
in Sweden. Products are manufactured at 11 plants in Sweden, Germany, Portugal,
France, England, the United States and Argentina. It had 1998 sales of US$325
million (SEK 2,700 million).
Snap-on Incorporated is a US$1.8 billion leading global developer, manufacturer,
and marketer 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.
Statements in this release that are not historical facts, including statements
(i) that include the word "expects," or words of similar importance with
reference to the Corporation or management; (ii) specifically identified as
forward-looking; or (iii) describing the Corporation's or management's future
plans, objectives or goals, are forward-looking statements. The Corporation or
its representatives may also make similar forward-looking statements from time
to time orally or in writing. The Corporation cautions the reader that these
statements are subject to risks, uncertainties or other factors that could cause
(and in some cases have caused) actual results to differ materially from those
described in any such statement. These important factors include risks
associated with the Corporation's ability to integrate the acquisition. Other
factors include the Corporation's ability to withstand external negative factors
including changes in trade, monetary and fiscal policies, laws and regulations,
or other activities of governments or their agencies; significant changes in the
current competitive environment; inflation; currency fluctuations or the
material worsening of the economic and political situation in Asia or other
parts of the world. These factors may not constitute all factors that could
cause actual results to differ materially from those discussed in any
forward-looking statement. The Corporation operates in a continually changing
business environment and new factors emerge from time to time. The Corporation
cannot predict such factors nor can it assess the impact, if any, of such
factors on the Corporation or its results. The Corporation disclaims any
responsibility to update any forward-looking statement provided in this release.
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Media contact: Investor relations contact:
Richard Secor Bill Pfund
262/656-5561 262/656-6488
www.snapon.com