Applied Industrial Agrees to Buy Fluid Power Resource Businesses for $169M

Applied Industrial Technologies, Cleveland, OH, has agreed to buy Fluid Power Resource, LLC, businesses.
 
The 19-location acquisition includes distributors Bay Advanced Technologies, Carolina Fluid Components, DTS Fluid Power, FluidTech, Hughes HiTech, Hydro Air, and Power Systems. The businesses together employ 455 people and had 2007 sales of $244 million.
 
The purchase price is $169 million in cash.
 
Each of the businesses will operate as a subsidiary of Applied and will maintain their current local identities. The companies will be led by Warren E. (Bud) Hoffner, who oversees Applied's fluid power business unit. FPR companies distribute pumps, motors, valves, actuators, cylinders, manifolds, hose fittings, connectors, FRL's, gear boxes, and all other essential fluid power components.
 
The addition of these 19 Fluid Power Resource locations, together with their corporate resources, extends our fluid power footprint within North America and increases Applied's capabilities in the areas of fluid power system integration; manifold design, machining, and assembly; and the integration of hydraulics with electronics for complete machine design," said Hoffner.
 
Applied has doubled its sales since 1997 through a combination of organic growth and 23 acquisitions.
 
With this acquisition, Applied's fluid power business group will serve customers through 67 sales and service facilities in the U.S., Canada and Mexico.
 
About The Acquired Distribution Businesses
Bay Advanced Technologies employs 156 people who provide solutions to automation and control applications. It operates three locations in Austin, TX; Newark, CA; and Mission Viejo, CA.

Carolina Fluid Components distributes hydraulic and pneumatic components, electronic controls required to operate fluid and air-powered systems, and after-market parts for maintenance and repair. The company employs 60 people at operations in Charlotte, NC and Norcross, GA.
 
DTS Fluid Power is a mobile hydraulics distributor. The company employs 38 people at locations in Grandville, MI; Elk Grove, IL; and Madison Heights, MI.
 
FluidTech is a distributor and manufacturer representative of precision mobile hydraulic components with two operations in Lenexa, KS. The company employs 49 people.
 
Hughes HiTech is an industrial automation supplier in Clarence, NY. The company employs 22 people.
 
Hydro Air is a distributor of hydraulic and pneumatic components and systems. The company employs 60 people throughout its four locations in North Haven, CT; Raymond, ME; Horsham, PA; and Cranston, RI.
 
Power Systems is a distributor of hydraulic fluid power equipment, such as pumps, valves, gearboxes, differentials, hydrostatic transmissions and motors. The company employs 62 people at its facilities in Ankeny, IA; Chanhassen, MN; Tea, SD; and Richfield, WI.
 
For its fiscal year ended June 30, 2007, Applied posted sales of $2 billion.