Monday, Applied Industrial Technologies (AIT), a distributor of industrial products, announced that it has agreed to acquire the assets of Fluid Power Resource, LLC and the seven fluid power distribution businesses, Bay Advanced Technologies, Carolina Fluid Components, DTS Fluid Power, FluidTech, Hughes HiTech, Hydro Air, and Power Systems, for $169 million.
The businesses employ 455 people and generated annual sales of $244 million in 2007.
The Cleveland, Ohio-based company said that the transaction would be funded through a combination of existing cash and financing through established credit facilities.
The company also said that each of the businesses would operate as a subsidiary of Applied and would maintain their current local identities. Warren Hoffner, Vice President, General Manager of Fluid Power, who oversees Applied's fluid power business unit, will lead the companies.
As a result of the acquisition, Applied's fluid power business group will serve customers through 67 sales and service facilities in the U.S., Canada and Mexico.
AIT closed Monday's regular trading session at $24.12, up $0.10 or 0.42%.
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