P&F Industries, Inc. (NASDAQ: PFIN) today announced that effective April 5, 2017, it acquired substantially all of the assets, including certain real property, comprising the business of Jiffy Air Tool, Inc., a Nevada based corporation that manufactures and distributes pneumatic tools and components, primarily sold to aerospace manufacturers. The purchase price consisted of approximately $7 million in cash and the assumption of certain payables and contractual obligations and is subject to a post-closing working capital adjustment. In addition, the seller may be entitled to up to $1 million in additional contingent consideration based upon certain revenue thresholds and other criteria set forth in the Asset Purchase Agreement with respect to two defined measurement periods occurring within approximately the first two years following the closing date. Bonanza Holdings Corp. purchased the operating assets of Jiffy Air Tool and Bonanza Properties Inc. purchased the real property of Jiffy Air Tool. Each of Bonanza Holdings Corp. and Bonanza Properties Corp. are wholly owned subsidiaries of Florida Pneumatic. We anticipate that this acquisition will be immediately accretive to earnings.
Richard Horowitz, P&F's Chairman, President and Chief Executive Officer, stated, "I am extremely pleased to announce the acquisition of the Jiffy Air Tool business. Jiffy is one of the preeminent brands of air tools used to manufacture commercial jets and other aircraft both in North America and internationally. This acquisition further expands our product offering in the aerospace sector of the pneumatic tool market. By adding this highly-regarded line of air tools to the P&F family, we believe we have a significant opportunity to enhance its growth with our manufacturing, marketing and engineering resources. This acquisition is a meaningful steppingstone for the Company as we continue to transform into a more robust, global enterprise focused on the air tools and related accessories market."
Daroth Capital Advisors LLC acted as a financial advisor to P&F Industries in connection with the acquisition of Jiffy Air Tool, Inc.
About P&F Industries, Inc.
P&F Industries, Inc., through its wholly owned subsidiaries, manufactures and/or imports air-powered tools and accessories, sold principally to the industrial, retail and automotive markets. P&F's products are sold under its own trademarks and other trade names, as well as under the private labels of major manufacturers and retailers.
