NEW YORK - Snap-on Inc. will sell its Netherlands-based Sun Electric Systems (SES) business to DUINMAAIJER B.V., a limited liability company represented by an employee of SES, for a nominal cash purchase price, according to a filing submitted to the Securities and Exchange Commission on Monday.
The transaction is expected to be completed by the end of July 2007.
SES’s primary business is the research, development and manufacture of test equipment in Europe for aircraft hydraulics. The business had sales of $18.3 million in 2006.
Snap-on, headquartered in Kenosha, Wis., is selling SES because it is a non-core part of Snap-On's ongoing business strategies and not consistent with the Company's growth plans.
Snap-on expects to record an estimated $7 million after tax loss in the second quarter ended June 30, 2007, related to the sale of SES. At closing, Snap-on expects to incur cash expenditures related to the sale of SES, including transaction and other costs, of about $6 million.
