LONDON, UK / ACCESSWIRE / January 11, 2018 / Active-Investors.com has just released a free research report on Applied Industrial Technologies, Inc. (NYSE: AIT) ("Applied"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AIT as the Company's latest news hit the wire. On January 09, 2018, the Company declared that it has signed an agreement to acquire FCX Performance, Inc. for a total consideration of approximately $768 million. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Applied Industrial Technologies most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Deal Details
- The transaction, expected to close within 30 days, is subject to customary adjustments, including the completion of the Hart-Scott-Rodino waiting period and satisfaction of other customary conditions. The transaction was approved by Applied's Board of Directors.
- The transaction will be financed with a new credit facility comprised of a $780 million Term Loan A and $250 million revolver.
- The acquisition is expected to contribute approximately $550 million in sales and $68 million in EBITDA in the first 12 months of Applied's ownership, excluding one-time transaction expenses and the impact of purchase accounting adjustments.
- The transaction is expected to be accretive in the fiscal year 2019 following recognition of related one-time transaction costs in the fiscal year 2018.
Strategic Benefits of the Acquisition
The shared business philosophies and the complementary products of both Companies, including custom application expertise, and complete one-stop solutions offering, will provide enhanced value for Applied's customers and excellent growth potential for its suppliers and team members. The acquisition is likely to position Applied as the industry leader for engineered fluid power and flow control systems, and differentiated industrial distributor. The deal will also provide cost saving and efficiency improvement benefits.
Combined Resources Will Make Applied a Leading Technical Solutions Provider
Commenting on the acquisition, Neil A. Schrimsher, President and Chief Executive Officer (CEO) of Applied, expressed that FCX Performance will bring a number of advantages to Applied, including market leading, value-added specialty flow control expertise with premier brands, high-touch technical service, an extensive footprint, and strong customer relationships. This compelling adjacency move is an excellent fit, especially when considering served industries, customer opportunities, engineering capabilities, and value-added services. Schrimsher added that combined resources will make Applied a leading technical solutions provider with significant opportunities for growth.
Applied's Acquisition Agreement in 2017
Applied acquired Sentinel Fluid Controls, a distributor of hydraulic and lubrication components, systems, and solutions in March 2017. The terms of the transaction were not disclosed. The addition of Sentinel Fluid Controls complemented and enhanced Applied's fluid power market leadership.
About Applied Industrial Technologies, Inc.
Founded in 1923 and headquartered in Cleveland, Ohio, Applied is a leading distributor of bearings, power transmission products, fluid power components, and other industrial supplies, serving MRO and OEM customers in virtually every industry.
About FCX Performance Inc.
FCX Performance is a leading process flow control Company, providing technical, mission-critical products and services to more than 15,000 end users, OEMs, and EPC firms across a broad range of industries and markets. Headquartered in Columbus, Ohio, the Company has 68 locations with more than 1,000 team members.
Stock Performance Snapshot
January 10, 2018 - At Wednesday's closing bell, Applied Industrial Technologies' stock fell 1.77%, ending the trading session at $69.35.
Volume traded for the day: 367.20 thousand shares, which was above the 3-month average volume of 209.57 thousand shares.
Stock performance in the last month — up 9.04%; previous three-month period — up 8.78%; past twelve-month period — up 14.34%; and year-to-date - up 1.84%
After yesterday's close, Applied Industrial Technologies' market cap was at $2.67 billion.
Price to Earnings (P/E) ratio was at 19.49.
The stock has a dividend yield of 1.67%.
The stock is part of the Services sector, categorized under the Industrial Equipment Wholesale industry.
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