P&F Industries, Inc. (“P&F”) is a Delaware corporation
incorporated on April 19, 1963. P&F and each of its subsidiaries are herein
referred to collectively as the “Company.” In addition, the words
“we”, “our” and “us” refer to the Company.
The Company operates in two primary lines of business, or segments: (i) tools
and other products (“Tools”) and (ii) hardware and accessories (“Hardware”).
The Company conducts its Tools business through a wholly-owned subsidiary, Continental
Tool Group, Inc. (“Continental”), which in turn currently operates
through its wholly-owned subsidiaries, Florida Pneumatic Manufacturing Corporation
(“Florida Pneumatic”) and Hy-Tech Machine, Inc. (“Hy-Tech”).
During the third quarter of 2014, the Company acquired Exhaust Technologies
Inc. (“ETI”), a developer and distributor of pneumatic tools, through
a merger between a newly formed, wholly-owned subsidiary of Florida Pneumatic
and ETI.
We conduct our Hardware business through a wholly-owned subsidiary, Countrywide
Hardware, Inc. (“Countrywide”). Countrywide conducts its business
operations through its wholly-owned subsidiary, Nationwide Industries, Inc.
(“Nationwide”).
Florida Pneumatic
Florida Pneumatic imports and sells pneumatic hand tools, most of which are
of its own design, primarily to the retail, industrial and automotive markets.
This line of products includes sanders, grinders, drills, saws and impact wrenches.
These tools are similar in appearance and function to electric hand tools, but
are powered by compressed air, rather than directly by electricity. Air tools,
as they are more commonly referred to, generally are less expensive to operate,
offer better performance and weigh less than their electrical counterparts.
Florida Pneumatic imports approximately seventy-five types of pneumatic hand
tools, most of which are sold at prices ranging from $50 to $1,000, under the
names “Florida Pneumatic”, “Universal Tool,” AIRCAT
or NITROCAT, as well as under the trade names or trademarks of several private
label customers. These products are sold to retailers, distributors, and private
label customers through in-house sales personnel and manufacturers’ representatives.
The AIRCAT and NITROCAT brand of pneumatic tools are sold primarily to the automotive
market. Users of Florida Pneumatic’s hand tools include industrial maintenance
and production staffs, do-it-yourself mechanics, automobile mechanics and auto
body personnel.
Hy-Tech
Hy-Tech manufacturers and distributes its own line of industrial pneumatic tools
and parts under the “ATP” brand. Under the ATP brand, Hy-Tech produces
and sells over sixty types of pneumatic tools, which include impact wrenches,
grinders, drills, and motors that are sold at prices ranging from $450 to $28,000.
Users of ATP parts and tools include refineries, chemical plants, power generation
facilities, heavy construction enterprises, and oil and mining companies. Further,
it also manufacturers tools to customer unique specifications. In addition,
Hy-Tech manufactures an extensive line of pneumatic tool replacement parts that
are sold to original equipment manufacturers (“OEMs”), as well as
competitively. It also manufactures and distributes high pressure stoppers for
hydrostatic testing of fabricated pipe under the “Thaxton” brand
name. It also produces a line of siphons under the “Eureka” name.
Other than a line of sockets sold under the “OZAT” brand name that
are imported from Israel, all Hy-Tech products are made in the United States
of America. In August 2014, a newly formed wholly-owned subsidiary of Hy-Tech,
acquired substantially all of the assets comprising the business of ATSCO, an
Ohio-based corporation engaged in the design, manufacture and distribution of
pneumatic tools and parts. Following a transition period that lasted into middle
of 2015, all ATSCO products are now manufactured in Hy-Tech’s primary
facility located in Cranberry, PA.
Hardware
We conduct our Hardware business through a wholly-owned subsidiary, Countrywide
Hardware, Inc. (“Countrywide”). Countrywide conducts its business
operations through its wholly-owned subsidiary, Nationwide Industries, Inc.
(“Nationwide”).
Nationwide
Nationwide is a developer, importer, and manufacturer of fencing hardware, patio
products, and door and window accessories including rollers, hinges, window
operators, sash locks, custom zinc castings and door closers. Nationwide’s
products are sold through in-house sales personnel and independent manufacturers’
representatives to distributors, dealers, retailers and OEM customers. End users
of Nationwide’s products include contractors, home builders, pool and
patio enclosure contractors, plumbers, OEM/private label customers and general
consumers. Nationwide currently out-sources the manufacturing of approximately
98% of its product with several overseas factories located in China and Taiwan,
while retaining design, quality control, and patent and trademark control. There
are redundant supply sources for most products. Nationwide manufactures approximately
2% of its products sold including rollers, hinges and pool enclosure products
at its facility in Tampa, Florida. Nationwide also provides value-add services
for the entire product line with local packaging, kitting, rework and fabrication
operations performed in its Tampa location.
Nationwide’s sales are moderately seasonal, with revenues typically increasing
with home construction and remodeling activity, which generally occurs during
the spring and summer months. The majority of Nationwide’s products are
sold off the shelf. The primary competitive factors affecting Nationwide are
quality, breadth of products and availability of products, customer service
and technical support.
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