Applied Industrial Technologies Inc. has acquired Dallas-based fluid power company Hydradyne LLC.
Cleaveland-based Applied Industrial, which trades on the NYSE under the ticker AIT, announced the purchase of the hydraulics maker on November 22.
“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 [sic] extremely well with our strategy and long-term objectives,” said Applied President and Chief Executive Officer Neil A. Schrimsher.
Applied is one the largest fluid power and motion control system distributors nationwide. According to Schrimsher, the acquisition of Hydradyne will “enhance” Applied’s footprint in the U.S. Southeast.
Hydradyne President Lon Jennings echoed Schrimsher’s sentiment.
“Joining Applied will accelerate our potential by leveraging complementary capabilities, innovative fluid power solutions, and a leading technical industry position as a mutual team,” said Jennings.
Jennings explained that the acquisition was the “best strategic” fit for all parties involved. “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.”
No purchase price was disclosed in the announcement. However, the purchase is expected to generate an additional $260 million in revenue for Applied and $30 million in EBITDA (earnings before interest, taxes, depreciation, and amortization). Hydradyne currently employs around 500 people working in 33 locations throughout the Southeast.
Applied’s stock has soared this year. Since January 1, the stock is up over 68%. For comparison, the S&P 500 is up a much more modest, though still impressive, 28%.