Applied Industrial Technologies buys Dallas-based fluid power company

Applied Industrial Technologies of Cleveland said it has agreed to buy a Texas company that provides fluid power products and services.

Terms of the acquisition of Hydradyne L.L.C., based in Dallas, were not disclosed in a news release about the deal on Friday, Nov. 22. However, Applied Industrial disclosed in a filing with the U.S. Securities and Exchange Commission that it's paying $272 million, "subject to customary post-closing adjustments in respect of cash, indebtedness, transaction expenses and working capital."

The purchase will be funded with cash on hand, Applied Industrial said in the SEC filing. It expects the deal to be closed before the end of this calendar year.

Applied Industrial in its release described Hydradyne as "one of the largest U.S. distributors focused on fluid power and motion control systems with advanced service capabilities and product offerings in hydraulics, pneumatics, electromechanical, instrumentation, filtration, and fluid conveyance. "

The Dallas company has nearly 500 employees in 33 locations across the Southeastern U.S., according to the release.

Applied Industrial said in the release that it "expects the acquisition to contribute approximately $260 million in sales and $30 million in EBITDA (earnings before interest, taxes, depreciation and amortization) before anticipated synergies, as well as be accretive to EPS, within the first 12 months of ownership."

The release did not detail the synergies Applied Industrial expects to achieve. An Applied Industrial spokesperson said via email that the company has not "provided synergy detail at this time."

Neil A. Schrimsher, president and CEO of Applied Industrial, said in a statement that the planned acquisition "represents another key step in the expansion of our Engineered Solutions segment and leading technical industry position." He said Hydradyne "will enhance our footprint within the growing and strategic U.S. Southeast region and positively influence our business mix" and will bolster efforts "to serve the rapid pace of innovation developing across fluid power systems as secular demand tied to reshoring, equipment modernization, power management, connectivity, and electrification continues to grow."

Applied Industrial is a distributor and technical services provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies.

The company last month reported that net sales for its fiscal 2025 first quarter ended Sept. 30 were $1.1 billion, up 0.3 percent from the like quarter a year ago. The company reported net income of $­­­92.1 million, or $2.36 per share, down about 1 percent.

Applied Industrial stock as of 1:45 p.m. Friday was trading at $276.05 per share, up about 2.5% from the close on Thursday, Nov. 21, and near the 52-week high of $277.18. The 52-week high is $155.47.