Applied Industrial Technologies, Inc. agreed to acquire Hydradyne, LLC from LOR, Inc. for approximately $270 million.
November 21, 2024
Share
Applied Industrial Technologies, Inc. (NYSE:AIT) agreed to acquire Hydradyne, LLC from LOR, Inc. for approximately $270 million on November 21, 2024. A cash consideration of $272 million will be paid by Applied Industrial Technologies, Inc. The total consideration paid by Applied will be funded with cash on hand. Applied Industrial Technologies shall deposit with the Escrow Agent, in accordance with the Adjustment Escrow Agreement, an amount equal to $4 million.
The Transaction is expected to close in the fourth quarter of calendar year 2024. Consummation of the Transaction is subject to customary closing conditions, including the expiration of the waiting period applicable to the consummation of the Transaction under the U.S. Hart-Scott-Rodino Antitrust Improvement Act of 1976. The Purchase Agreement also includes customary termination provisions and provides that if the Transaction has not been consummated by March 21, 2025.
Applied expects the acquisition to contribute approximately $260 million in sales and $30 million in EBITDA before anticipated synergies, as well as be accretive to EPS, within the first 12 months of ownership prior to transaction-related expenses and the impact of purchase accounting adjustments.
Squire Patton Boggs LLP acted as legal advisor for Applied Industrial Technologies, Inc. McDermott Will & Emery LLP acted as legal advisor for LOR, Inc.
Applied Industrial Technologies, Inc. is a value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies. The Companyâs segments include Service Center Based Distribution and Engineered Solutions. The Service Center Based Distribution segment operates through local service centers and distribution centers with a focus on providing products and services addressing the maintenance and repair of motion control infrastructure and production equipment. Its products include industrial bearings, motors, belting, drives, couplings, pumps, linear motion products, hydraulic and pneumatic components, filtration supplies, and hoses. The Engineered Solutions segment includes its operations that specialize in distributing, engineering, designing, integrating, and repairing hydraulic and pneumatic fluid power technologies, and engineered flow control products and services.