Applied Industrial Technologies (NYSE: AIT) has announced its definitive agreement to acquire Hydradyne, LLC, a premier provider of fluid power solutions and value-added services. The acquisition is expected to contribute approximately $260 million in sales and $30 million in EBITDA before anticipated synergies. Additionally, it is projected to be accretive to EPS within the first 12 months of ownership.
Hydradyne operates out of 33 locations across the southeastern U.S. and has a team of nearly 500 associates. The company specializes in fluid power system design, fabrication, assembly, installation, repair, and component support, with product offerings in hydraulics, pneumatics, electromechanical, instrumentation, filtration, and fluid conveyance.
Applied Industrial Technologies' President & CEO, Neil A. Schrimsher, stated that the acquisition represents a key step in the expansion of the company's Engineered Solutions segment and its leading technical industry position. He highlighted the alignment of Hydradyne's technical capabilities, local customer-centric culture, and operational caliber with Applied's strategy and long-term objectives.
Lon Jennings, President of Hydradyne, expressed that joining Applied will accelerate their potential by leveraging complementary capabilities, innovative fluid power solutions, and a leading technical industry position as a mutual team.
As a result of these announcements, the company's shares have moved 2.2% on the market, and are now trading at a price of $275.1. Check out the company's full 8-K submission here.
