P & F Industries Acquires Hy-Tech Machine and Related Assets for $16.9 Million

P&F Industries, Inc. announced that,through a newly-formed subsidiary, it has acquired substantially all of the assets comprising the business of Hy-Tech Machine, Inc., a Pennsylvania manufacturer and distributor of pneumatic tools and parts for industrial applications. In addition, the company acquired substantially all of the assets of Quality Gear & Machine, Inc., an entity related to Hy-Tech and a supplier of component parts to Hy-Tech and others. The aggregate purchase price for these two businesses consisted of $16.9 million in cash, the assumption of certain payables and liabilities and the obligation to make certain contingent payments. The company also acquired certain real estate from HTM Associates, an entity related to Hy-Tech, for $2.2 million in cash. This acquisition will be immediately accretive to earnings. The newly-acquired business is headquartered in Cranberry Township, PA and maintains a component manufacturing operation in Punxsutawney, PA. Hy-Tech reported$14 million in revenues in 2005. Certain members of management and other employees of Hy-Tech will remain active in the operations of the business. P&F Industries, Inc., through its three wholly-owned operating subsidiaries, Florida Pneumatic Manufacturing Corp., Continental Tool Group, Inc., and Countrywide Hardware, Inc., manufactures and/or imports air-powered tools sold principally to the industrial, retail and automotive markets, as well as various residential hardware.