Applied Industrial Technologies announced Friday that it has reached an agreement to acquire Hydradyne — a deal that would combine two of the industry’s leading distributors.
Cleveland-based Applied said the move would add one of the nation’s top fluid power and motion control distributors, and added that Hydradyne's products and services span across hydraulics, pneumatics, electromechanical, instrumentation, filtration and fluid conveyance.
Fort Worth-based Hydradyne operates 33 locations across the Southeast staffed by a workforce of nearly 500. The company came in at no. 38 on ID’s 2024 Big 50; Applied ranked no. 8.
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“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,” Applied President and CEO Neil Schrimsher said in the announcement. “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.”
Hydradyne President Lon Jennings added that the transaction would "accelerate" the company’s potential.
“During our evaluation, it was clear Applied is the best strategic fit for our employees, customers and suppliers,” Jennings said. “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.”
Terms of the deal were not disclosed. Applied said that it expects Hydradyne to add some $260 million in sales and $30 million in EBITDA — before anticipated synergies — within 12 months, prior to transaction-related expenses and accounting adjustments. The deal is also expected to be accretive to the company’s earnings per share over that span.
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