Applied Industrial Technologies to Acquire Distribution Businesses of SKF in Australia and New Zealand
Cleveland, OH - Applied Industrial Technologies announced a definitive agreement to acquire SKF's company-owned distribution businesses in Australia and New Zealand ("SKF Distribution"). The acquisition is expected to be completed by July 1, 2012.
SKF Distribution supplies bearings, seals, lubrication products, and power transmission products through 29 Australian service centers and eight New Zealand locations, all wholly owned. The service centers are supported by central warehouses in Australia and New Zealand and a headquarters in Melbourne. SKF Distribution employs 225 people and had 2011 pro forma sales of approximately US$82 million (AUD$79 million).
Neil A. Schrimsher, Applied's Chief Executive Officer, said, "We are excited to expand our global capabilities and global reach. Australia and New Zealand are attractive markets offering growing economies, targeted vertical markets and many common global customers. The SKF Distribution business is an excellent fit, especially considering our operational and cultural similarities along with the shared commitment to providing value-added solutions to our customers. Moreover, the nearly ninety-year relationship between Applied and SKF dates back to the origins of our company, and SKF has always been one of Applied's largest manufacturer-partners. We look forward to serving SKF as a distribution partner in Australia and New Zealand, and we see significant growth prospects through the addition of complementary product lines and solutions. Our expectation is that this acquisition will be accretive in the first year."
"SKF Distribution provides broad geographic coverage of Australia and New Zealand with strong positions in mining, steel, pulp and paper, forestry, agriculture, building construction, and food and beverage industries," said Todd A. Barlett, Vice President - Acquisitions and Global Business Development. "The business has significant preferred supplier arrangements with major customers and enjoys a solid reputation as a solutions provider. SKF is one of the largest bearing suppliers in the Australia and New Zealand markets, providing an excellent foundation for growth."
