Snap-on Inc (NYSE: SNA)

Snap-on is a leading global innovator, manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks including those working in vehicle repair, aerospace, the military, natural resources, and manufacturing. The company's principal value-creating mechanism has been to observe work and translate insights into creative solutions that make essential tasks easier, meeting the needs of rapidly-evolving workplaces. Products and services are sold through the company’s network of widely recognized franchisee vans as well as through direct and distributor channels, under a variety of notable brands.

Snap-on generates revenue through the sale of tools, diagnostics, information and management systems, and equipment products, as well as through financing programs. The tools product category includes hand tools, power tools, tool storage products and other similar products. The diagnostics, information and management systems product category includes handheld and computer-based diagnostic products, service and repair information products, diagnostic software solutions, electronic parts catalogs, business management systems and services. The equipment product category includes solutions for the service of vehicles and industrial equipment such as wheel alignment equipment, wheel balancers, tire changers, vehicle lifts, test lane equipment, collision repair equipment, vehicle air conditioning service equipment, brake service equipment, and fluid exchange equipment. Additionally, Snap-on offers financing programs to facilitate the sales of its products and to support its franchise business, including installment sales and lease contracts arising from franchisees’ customers and Snap-on customers who require financing for the purchase or lease of tools, diagnostics, and equipment products on an extended-term payment plan, and business and vehicle loans and leases to franchisees.

The company operates through the following segments: the Commercial & Industrial Group, the Snap-on Tools Group, the Repair Systems & Information Group, and Financial Services.

• Commercial & Industrial Group: This segment consists of business operations serving a broad range of industrial and commercial customers worldwide, including customers in the aerospace, natural resources, government and military, power generation, transportation and technical education market segments. It primarily operates through direct and distributor channels. Major brands associated with this segment include ATI, BAHCO, CDI, Fastorq, Irimo, Lindström, Mountz, Norbar, Sioux, Sturtevant Richmont, and Williams.

• Snap-on Tools Group: This segment consists of business operations primarily serving vehicle service and repair technicians through the company’s multinational mobile tool distribution channel. Key brands include Snap-on, Blue-Point, and related product lines such as hand tools, power tools, tool storage products, diagnostics, certain equipment and related accessories, mobile tool stores, websites, electronic parts catalogs, warranty analytics solutions, business management systems and services, OEM specialty tools and equipment development and distribution, and OEM facilitation services.

• Repair Systems & Information Group: This segment consists of business operations serving other professional vehicle repair customers worldwide, primarily owners and managers of independent repair shops and OEM dealerships, through direct and distributor channels. Notable brands under this segment include Car-O-Liner, Challenger, Hofmann, John Bean, Pro-Cut, Mitchell1, Dealer-FX, Ecotechnics, and Cognitran.

• Financial Services: This segment consists of the business operations of Snap-on Credit LLC (SOC), the company’s financial services business in the United States, and Snap-on’s other financial services subsidiaries in international markets where Snap-on has franchise operations. It provides financing for the purchase or lease of tools, diagnostics, and equipment products on an extended-term payment plan to franchisees’ customers and Snap-on customers, as well as business and vehicle loans and leases to franchisees.

Snap-on is a leading manufacturer and distributor of professional tools, tool storage, diagnostics, equipment products, and repair software and solutions, offering a broad line of these products to both vehicle service and industrial marketplaces. The company competes on the basis of its product quality and performance, product line breadth and depth, service, brand awareness and imagery, technological innovation and availability of financing. While no single company competes with it across all product lines and distribution channels, various companies compete in one or more categories, including OEMs and their proprietary electronic parts catalogs and diagnostics in the vehicle service and repair sector, and other tool and equipment manufacturers in the industrial sector.

Snap-on serves commercial and industrial customers including professionals in critical industries and emerging markets, professional vehicle repair technicians who purchase products through the multinational mobile tool distribution network, and other professional customers related to vehicle repair such as owners and managers of independent service and repair shops as well as original equipment manufacturer dealership service and repair shops. The company also serves franchisees who require financing options for vehicle and business needs through its Financial Services segment.