Tool and equipment manufacturer Snap-On Inc., Kenosha, WI, has terminated its joint venture Snap-On Credit LLC, which provides financial services to Snap-On’s U.S. franchisees and customers. The joint venture was established in 1999 with CIT; CIT is the exclusive purchaser of financing contracts originated by Snap-On Credit.

As a consequence of the joint-venture termination, Snap-on will acquire CIT’s interest in the joint venture for $8.2 million, Snap-on Credit will become a wholly owned subsidiary of Snap-on Inc., and Snap-on Credit will continue to service the existing portfolio of contracts owned by CIT.

Snap-on and CIT had been in discussions concerning a longer-term new joint venture agreement. Both parties have agreed to continue these discussions. To the extent a mutually …