Note 2: Acquisitions

On November 16, 2016, Snap-on acquired Ryeson Corporation (d/b/a Sturtevant Richmont) for a preliminary cash purchase price of $12.9 million (or $12.5 million, net of cash acquired). The preliminary purchase price is subject to change based upon the finalization of a working capital adjustment that is expected to be completed in the first quarter of 2017. Sturtevant Richmont, based in Carol Stream, Illinois, designs, manufactures and distributes mechanical and electronic torque wrenches as well as wireless torque error proofing systems for a variety of industrial applications. For segment reporting purposes, the results of operations and assets of Sturtevant Richmont have been included in the Commercial & Industrial Group since the acquisition date.

As of December 31, 2016, and subject to the finalization of the working capital adjustment in the first quarter of 2017, the company has completed the majority of the purchase accounting valuations for the acquired net assets, including the identification of $3.7 million of non-amortized trademarks, of Sturtevant Richmont. On a preliminary basis, the $3.2 million excess of the Sturtevant Richmont purchase price over the fair value of the net assets acquired was recorded in “Goodwill” on the accompanying Consolidated Balance Sheets. The company does not expect any of the goodwill will be deductible for tax purposes.

On October 31, 2016, Snap-on acquired Car-O-Liner Holding AB (“Car-O-Liner”) for a preliminary cash purchase price of $151.8 million (or $147.9 million, net of cash acquired). The preliminary purchase price is subject to change based upon the finalization of a working capital adjustment that is expected to be completed in the first quarter of 2017. Car-O-Liner, headquartered in Gothenburg, Sweden, designs and manufactures collision repair equipment, and information and truck alignment systems. For segment reporting purposes, substantially all of Car-O-Liner’s results of operations and assets have been included in the Repair Systems & Information Group since the acquisition date, with the remaining portions included in the Commercial & Industrial Group.

As of December 31, 2016, the purchase accounting valuations for the acquired net assets of Car-O-Liner, including intangible assets, were not complete. Given the timing and complexity of this acquisition, the presentation of Car-O-Liner in Snap-on’s 2016 Consolidated Financial Statements, including the allocation of the purchase price, has been prepared on a preliminary basis and changes to the allocations will occur as fair value estimates of the acquired net assets are determined. The company anticipates completing the purchase accounting valuations for Car-O-Liner during the first half of 2017. On a preliminary basis, the $128.1 million excess of the Car-O-Liner purchase price over the net assets acquired was recorded in “Goodwill” on the accompanying Consolidated Balance Sheets. The company does not expect any of the goodwill will be deductible for tax purposes.

The following is a summary of the preliminary values of the assets acquired and liabilities assumed of Car-O-Liner as of the acquisition date:


(Amounts in millions)	Amount
Assets acquired:
Cash	$	3.9
Trade and other accounts receivable		17.4
Inventories		18.0
Property and equipment		7.6
Goodwill		128.1
Other assets		2.7

Total assets acquired		177.7

Liabilities assumed:
Accounts payable		9.8
Accrued expenses		9.3
Pension liabilities		4.3
Other liabilities		2.5

Total liabilities assumed		25.9

Preliminary net assets acquired	$	151.8

The post-acquisition revenues and earnings for the Sturtevant Richmont and Car-O-Liner acquisitions, individually and collectively, were neither significant nor material to Snap-on’s 2016 results of operations.

On July 27, 2015, Snap-on acquired the assets of Ecotechnics S.p.A. (“Ecotechnics”) for a cash purchase price of $11.8 million. Ecotechnics designs and manufactures vehicle air conditioning service equipment for original equipment manufacturer (“OEM”) dealerships and the automotive aftermarket worldwide.

On May 28, 2014, Snap-on acquired substantially all of the assets of Pro-Cut International, Inc. (“Pro-Cut”) for a cash purchase price of $41.3 million. Pro-Cut designs, manufactures and distributes on-car brake lathes, related equipment and accessories used in brake servicing by automotive repair facilities.

For segment reporting purposes, the results of operations and assets of Ecotechnics and Pro-Cut have been included in the Repair Systems & Information Group since the respective acquisition dates.

Pro forma financial information has not been presented for any of these acquisitions as the net effects, individually and collectively, were neither significant nor material to Snap-on’s results of operations or financial position. See Note 6 for further information on goodwill and other intangible assets.