P&F Industries, Inc. announced that effective recently, through a wholly owned subsidiary of Hy-Tech Machine, Inc., it acquired substantially all the assets comprising the businesses of Blaz-Man Gear, Inc. and Gear Products & Manufacturing, Inc., each an Illinois-based corporation that manufactures and distributes custom gears and power transmission gear products. The purchase price consisted of an aggregate of approximately $3.5 million in cash and the assumption of certain payables and contractual obligations. In addition, the sellers may be entitled to additional contingent consideration based upon sale of certain categories of acquired inventory during the two-year period following the closing date.
Richard Horowitz, P&F’s chairman, president and CEO, stated, “I am extremely pleased to announce the acquisition of both the Blaz-Man and Gear Products businesses. These acquisitions further expand our gear product offerings to a broader range of industries and provides us with expertise to expand into more complex spiral and straight bevel gear design and manufacture. We believe that consolidating the operations of these acquired businesses within Hy-Tech’s Quality Gear operations throughout the next 12 months should generate cost reductions and other efficiencies. This transaction is a meaningfully strategic step for the company, as we continue to expand our offerings in the air tools and related accessories market.”