Applied completes Dynavest acquisition

By Staff -- Industrial Distribution, 7/1/2000

Cleveland-Applied Industrial Technologies secured its entry into Canada in June by completing the acquisition of three Dynavest distribution businesses.

Applied acquired 24 Bearing & Transmission locations, 15 HyPower locations, and four All Agro facilities, all in western Canada. The three businesses were part of parent company Dynavest Corp. and focus on bearings and power transmission, fluid power, and specialized agricultural markets, respectively.

Together, the divisions had sales of $72 million (U.S.) in 1999.

Applied's move into Canada serves three key purposes, said chief marketing officer Bill Purser. First, it fits the firm's strategic plan to become a North American distributor. Second, the two businesses are similar in focus and philosophy. And third, it will help Applied serve some of its national accounts customers with facilities in Canada.

Earlier this year, Applied re-structured its business platform to focus separately on fluid power and power transmission systems. Purser said Dynavest has a similar structure, with its Bearing & Transmission focus on the PT industry and its Hypower division's focus on fluid power.

Purser stressed that the acquired companies will not be run from Cleveland.

"We have no plans [to place] anyone from Cleveland or the states in Canada to run the company," he said. "It is a Canadian company run by Canadians. We're very confident in the management team that they've put together and see no reason to disrupt it."

The three divisions are owned by Applied Industrial Technologies Ltd., a Canadian company.

While the acquisition gives Applied coverage from Ontario to British Columbia, Purser said the company looks to grow eastward, as well.

"We do plan on further acquisitions, which would strengthen us or at least open the door for eastern Canada as well," he said.