Applied Industrial Technologies (AIT) Boosts Fluid Power with Hydradyne Acquisition.

Applied Industrial Technologies Expands Fluid Power Capabilities with Hydradyne Acquisition

Applied Industrial Technologies (NYSE: AIT) announced the completion of its acquisition of Hydradyne, LLC, effective December 31, 2024, marking a significant step in enhancing its fluid power distribution capabilities. Hydradyne, based in Dallas, Texas, is recognized as a leader in providing fluid power solutions, offering a wide range of products and services in hydraulics, pneumatics, and electromechanical systems. This move aligns with Applied's strategy to expand its footprint in the Southeastern U.S. market, where Hydradyne has established a strong presence and reputation.

Neil A. Schrimsher, President and CEO of Applied, expresses enthusiasm about the acquisition, highlighting its potential to leverage complementary technical skills and innovative solutions. The merger is expected to benefit various end markets, allowing Applied to meet evolving customer demands more effectively. By integrating Hydradyne's expertise in instrumentation, filtration, and fluid conveyance, Applied is poised to enhance its service offerings and technical solutions, further solidifying its position as a leading value-added distributor in the industry.

Financially, the acquisition is projected to generate approximately $260 million in sales and $30 million in EBITDA within the first year, prior to any integration synergies. This positions the acquisition as accretive to earnings per share (EPS), with Applied planning to provide further insights during its upcoming fiscal 2025 second quarter results announcement. Through this strategic acquisition, Applied Industrial Technologies aims to capitalize on current industry trends while enhancing its long-term growth trajectory and value creation potential.

In addition to the acquisition, Applied Industrial Technologies emphasizes its commitment to maintaining a strong value proposition for its customers. The company focuses on providing tailored solutions in industrial motion, fluid power, flow control, and automation technologies, catering to both maintenance, repair, and operations (MRO) as well as original equipment manufacturing (OEM) sectors.

As the integration of Hydradyne progresses, Applied Industrial Technologies is set to reinforce its competitive edge in the market, driving innovation and efficiency in fluid power distribution. This acquisition not only strengthens Applied's operational capabilities but also enhances its strategic alignment with customer needs and industry demands. For more information on their offerings, visit www.applied.com.