Snap-on to Acquire Certain Assets of Nexiq TechnologiesKENOSHA, Wis.--Dec. 12, 2002--Snap-on Incorporated announced today that it has signed an agreement to acquire assets related to the vehicle scanner and eTechnician(TM) operations of Nexiq Technologies based in Sterling Heights, Mich. The assets include those associated with industry-leading, heavy-duty truck, diesel and off-road vehicle diagnostics and telematics products and services. Revenues from these offerings totaled approximately $12 million in Nexiq's fiscal year ended September 29, 2002. The transaction is expected to close prior to year end.
For a purchase price of $7 million, Snap-on will acquire intellectual property ownership and diagnostics expertise in heavy-duty vehicle hand-held scan tools, such as the Pro-Link Plus(R) diagnostic system. Snap-on will also gain inroads into the telematics arena with eTechnician, a Web-based remote vehicle monitoring and diagnostics application.
"These products represent a near-neighbor opportunity and are an excellent strategic fit for Snap-on, giving us immediate increased access to the heavy-duty truck and off-road vehicle diagnostics marketplace," said Al Biland, Snap-on vice president - chief information officer and president - diagnostics and information group. "These assets also provide Snap-on with enhanced diesel and essential diagnostic tool expertise and relationships, while presenting intriguing opportunities with the telematics technologies.
"Snap-on's financial, business process and distribution strengths, combined with these innovative products and services, are expected to facilitate the expansion of our instrumentation with information philosophy in the vehicle-service marketplace. These offerings are an important addition to our growth platform, and we expect to rapidly integrate them into our diagnostics business," said Biland.
Snap-on Incorporated is a leading global developer, manufacturer and marketer of tool, diagnostic and equipment solutions for professional tool users. Product lines include hand and power tools, diagnostics and shop equipment, tool storage products, diagnostics software and other solutions for transportation-service, industrial, government, education and agricultural customers, and other commercial applications, including construction and electrical. Products are sold through its franchise dealer van, company direct sales and distributor channels, and the Internet. Founded in 1920, Snap-on is a $2+ billion, S&P 500 company headquartered in Kenosha, Wisconsin, and employs approximately 13,200 people worldwide.
Statements in this news release that are not historical facts, including statements (i) that include the words "expects," "targets," "anticipates" or "encouraged by" or similar words that reference Snap-on or its management; (ii) specifically identified as forward-looking; or (iii) describing Snap-on's or management's future outlook, plans, estimates, objectives or goals, are forward-looking statements. Snap-on or its representatives may also make similar forward-looking statements from time to time orally or in writing. Snap-on 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. Those important factors include the validity of the assumptions set forth above and risks associated with consummating the transaction including, without limitation, Snap-on's ability to integrate product lines, to capture new business, and the success of new products; and the absence of significant changes in inflation, the current competitive environment, energy supply or pricing, legal proceedings, supplier disruptions, currency fluctuations or the material worsening of economic and political situations around 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. Snap-on operates in a continually changing business environment and new factors emerge from time to time. Snap-on cannot predict such factors nor can it assess the impact, if any, of such factors on Snap-on's financial position or its results of operations. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results. Snap-on disclaims any responsibility to update any forward-looking statement provided in this news release.