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Applied Industrial completes acquisition of Fluid Power Resource, boosts FY09 outlook - Quick facts

Applied Industrial Technologies (AIT) said it has completed its acquisition of Fluid Power Resource, LLC and seven fluid power distribution businesses: Bay Advanced Technologies, Carolina Fluid Components, DTS Fluid Power, FluidTech, Hughes HiTech, Hydro Air, and Power Systems.

The final all-cash purchase price of $166 million, which was reduced by $3 million from the previously announced amount, was funded with existing cash of $62 million and financing through established credit facilities of $104 million, the company said.

Applied Industrial said it expects the acquisition to be accretive this year and will generate about $230 million in sales on an annualized basis.

As a result, Applied Industrial raised its sales and earnings guidance for fiscal 2009, and now expect earnings of $2.22 to $2.44 per share on sales of $2.32 to $2.43 billion. Previously, the company expected earnings of $2.20 to $2.40 per share on sales of $2.13 to $2.24 billion for Fiscal 2009.

Analysts polled by First Call / Thomson Financial currently expect the company to earn $2.25 per share on revenue of $2.27 billion for the fiscal year 2009.

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