Applied Industrial Technologies to Acquire Hydradyne, LLC
November 22 2024 - 7:00AM
Business Wire
Strategic Fluid Power Acquisition Within
Applied’s Engineered Solutions Segment
Applied Industrial Technologies (NYSE: AIT) announced today it
has signed a definitive agreement to acquire Hydradyne, LLC
(Hydradyne), a premier provider of fluid power solutions and
value-added services.
Based in Dallas, Texas, Hydradyne is one of the largest U.S.
distributors focused on fluid power and motion control systems with
advanced service capabilities and product offerings in hydraulics,
pneumatics, electromechanical, instrumentation, filtration, and
fluid conveyance. The company’s team of nearly 500 associates
operate out of 33 locations across the Southeastern U.S. with
specialization in fluid power system design, fabrication, assembly,
installation, repair and component support. Hydradyne’s products
and solutions are integral to powering and controlling critical
stationary and mobile equipment across a balanced mix of MRO and
OEM applications in key industrial, commercial, and emerging growth
verticals. Applied expects the acquisition to contribute
approximately $260 million in sales and $30 million in EBITDA
before anticipated synergies, as well as be accretive to EPS,
within the first 12 months of ownership prior to
transaction-related expenses and the impact of purchase accounting
adjustments.
Neil A. Schrimsher, President & Chief Executive Officer for
Applied, commented, “We are pleased to announce the pending
acquisition of Hydradyne, which represents another key step in the
expansion of our Engineered Solutions segment and leading technical
industry position. We have always admired Hydradyne’s team and
market approach. Their technical capabilities, local
customer-centric culture, and operational caliber aligns extremely
well with our strategy and long-term objectives. In addition,
Hydradyne will enhance our footprint within the growing and
strategic U.S. Southeast region and positively influence our
business mix. Our combined technical capabilities and access to
world class fluid power, motion, flow control, and automation
technologies presents a powerful value proposition for our
customers that will accelerate cross-selling and market
penetration. This includes enhancing our collective efforts to
serve the rapid pace of innovation developing across fluid power
systems as secular demand tied to reshoring, equipment
modernization, power management, connectivity, and electrification
continues to grow. Overall, this transaction creates notable
long-term value for all stakeholders, and we look forward to
welcoming the Hydradyne team to Applied.”
Lon Jennings, President of Hydradyne, added, “Today is a
significant milestone and opportune moment for Hydradyne. Joining
Applied will accelerate our potential by leveraging complementary
capabilities, innovative fluid power solutions, and a leading
technical industry position as a mutual team. During our
evaluation, it was clear Applied is the best strategic fit for our
employees, customers, and suppliers. They are a values-based
company with significant financial strength and over 100 years of
distribution leadership, while their strategy, culture, and
solutions-focused approach to the market aligns extremely well. I
am grateful for the contributions the Hydradyne team has made
through the years and look forward to our success as part of
Applied.”
About Applied® Applied Industrial Technologies is a
leading value-added distributor and technical solutions provider of
industrial motion, fluid power, flow control, automation
technologies, and related maintenance supplies. Our leading brands,
specialized services, and comprehensive knowledge serve MRO
(maintenance, repair, and operations) and OEM (original equipment
manufacturing), and new system install applications in virtually
all industrial markets through our multi-channel capabilities that
provide choice, convenience, and expertise. For more information,
visit www.applied.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20241122965860/en/
Ryan D. Cieslak Director – Investor Relations & Treasury
216-426-4887 / rcieslak@applied.com
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