Snap-on Acquires Car-O-Liner for $155M
One of the most well-known automotive tool brands just spent $155 Million in cash acquiring another giant in the collision repair industry. Time will only tell as we see what plays out with the plan as Snap-on acquires Car-O-Liner for $155M. The acquisition of the Sweden-based Car-O-Liner should broaden the tool giant’s foothold in the US. It will most certainly add equipment and expertise in the collision repair business. When a company spends this much cash on hand, one has to imagine there are big moves in place.
Car-O-Liner is based in Gothenburg, Sweden, and had trailing 12-month sales of approximately $95 million. So Snap-on purchased the global collision repair brand for just over 1.6x revenue. For the $3.4B Snap-on brand, this is pocket change and the ROI (Return On Investment) should be quite speedy. Whether it is to gain market share, remove competition, or just to add a revenue stream; taking the acquisition route should keep things friendly, at least for a while.
As Snap-on acquires Car-O-Liner, both sides say that it will be business as usual, before and after. The transaction is expected to close within 30 days, barring no issues with the closing conditions. Nick Pinchuk, Snap-on chairman and CEO, said “Car-O-Liner’s product offering and special expertise are important additions to our Repair Systems & Information Group, bringing greater capabilities in collision repair and strengthening Snap-on’s position in the heavy duty segment. Given trends in the collision space, including the need for greater precision, the requirement to accommodate new materials and the higher emphasis on shop efficiency, we believe this acquisition will further Snap-on’s progress along its strategic and coherent growth runway of expanding with repair shop owners and managers. We look forward to welcoming Car-O-Liner associates to the Snap-on family.”
Now the question becomes what happens in the future, a year or two after Snap-on acquires Car-O-Liner. Do the brands both continue to operate the same and live in their two separate and happy worlds? Or, does the Snap-on brand reign supreme and rebrand the Car-O-Liner name as their own? Either way, the acquisition is notable and eyes will be focused on the merger of two well-known brands. We will be sure to capture any new details here at Shop Tool Reviews.