P&F INDUSTRIES, INC. ANNOUNCES COMPLETION OF ACQUISITION BY SHOREVIEW INDUSTRIES

Rhea-AI Summary

P&F Industries, Inc. (PFIN) Completes Sale to ShoreView Industries, Ceases Trading on NASDAQ

Insights

Financial Analyst

The completion of P&F Industries' sale to ShoreView Industries at $13.00 per share in cash is a significant event for shareholders and the market. The cessation of trading on NASDAQ indicates a transition from a public to a private entity, which often aims to streamline operations and improve strategic focus without the pressures of quarterly earnings reports.

From a financial perspective, the buyout price should be compared to historical stock performance and industry multiples to assess fairness. The premium paid over the market price before the announcement often reflects the buyer's confidence in realizing synergies and future growth potentials. It is vital to consider the impact on liquidity for shareholders, as they will no longer be able to trade the stock.

Long-term implications for stakeholders include potential restructuring and strategy shifts under new ownership. While immediate liquidity is provided to shareholders, they will not benefit from any future value creation.

Mergers & Acquisitions Expert

The role of Skadden, Arps, Slate, Meagher & Flom LLP and East Wind Securities as advisors for the transaction underscores the complexity of M&A activities. Their involvement suggests robust due diligence and valuation processes, aiming to ensure the transaction's success and compliance with legal and financial regulations.

For P&F, the acquisition by ShoreView could bring in operational expertise and capital to fuel growth, which might include entry into new markets or the development of new products. However, acquisitions also come with integration risks and potential cultural clashes that could affect employee morale and customer relationships.

Industry Analyst

The transaction's impact on the tool manufacturing industry may be multifaceted. P&F's reference to its leadership position suggests it holds a significant market share and its partnership with ShoreView could lead to aggressive expansion strategies, potentially increasing competition within the sector.

Analyzing past trends, companies taken private often undergo significant transformation, which could lead to improved efficiencies or innovations. These changes could set new industry standards or disrupt existing market dynamics. Stakeholders, including competitors, suppliers and customers, should monitor P&F's strategic moves post-acquisition for potential ripple effects in the market.

MELVILLE, N.Y., Dec. 20, 2023 /PRNewswire/ -- P&F Industries, Inc. ("P&F" or the "Company") (NASDAQ: PFIN) today announced the completion of its sale to ShoreView Industries ("ShoreView"). Under the terms of the transaction, P&F shareholders will receive $13.00 per share in cash. With the completion of the transaction, P&F's common stock has ceased trading and will no longer be listed on the NASDAQ Global Select Market.

Richard Horowitz, Chairman of the Board, Chief Executive Officer and President, said, "The closing of this transaction represents the beginning of a new chapter for P&F, and we are excited for what the future holds. We are proud of the leadership position we have built and believe we are well prepared to advance our business and continue delivering high value tools for our customers with the expertise of the Shoreview team."

Tom D'Ovidio, Partner at ShoreView, said, "We are pleased to complete the transaction and are moving forward in partnership with the P&F team to accelerate P&F's growth."

Advisors

Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel to the Special Committee. East Wind Securities initiated the transaction and is serving as exclusive financial advisor to P&F and Ruskin Moscou Faltischek, P.C. is serving as legal advisor to P&F.

Sidley Austin LLP is serving as legal advisor to ShoreView.

ABOUT P&F INDUSTRIES, INC.

P&F Industries, Inc., through its wholly owned subsidiaries, is a leading manufacturer and importer of air-powered tools and accessories sold principally to the aerospace, industrial, automotive, and DIY markets. P&F's products are sold under its own trademarks, as well as under the private labels of major manufacturers and retailers.

ABOUT SHOREVIEW

Founded in 2002, ShoreView is a Minneapolis-based private equity firm that has raised over $1.3 billion of committed capital across four funds. ShoreView partners with family and entrepreneur-owned companies across many sectors, including engineered products, distribution, industrial services, business services, healthcare, and niche consumer products. Shoreview structures various acquisition, recapitalization, and build-up transactions, typically in businesses with revenues ranging between $20 million and $300 million.

If you are interested in speaking with ShoreView about add-on or platform investment opportunities, please contact Garrett Davis at garrett@shoreview.com.

View original content:https://www.prnewswire.com/news-releases/pf-industries-inc-announces-completion-of-acquisition-by-shoreview-industries-302020503.html

SOURCE P&F Industries, Inc.

FAQ

What is the latest news about P&F Industries, Inc. (PFIN)?

P&F Industries, Inc. (PFIN) has completed its sale to ShoreView Industries and has ceased trading on the NASDAQ Global Select Market.

What is the transaction amount for P&F Industries, Inc. (PFIN) shareholders?

P&F Industries, Inc. (PFIN) shareholders will receive $13.00 per share in cash as part of the completed transaction with ShoreView Industries.

Who are the legal advisors for P&F Industries, Inc. (PFIN) and ShoreView Industries?

Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel to the Special Committee of P&F Industries, Inc. (PFIN), while Sidley Austin LLP is serving as legal advisor to ShoreView Industries.