CLEVELAND, July 2, 2014 /PRNewswire/ -- Applied Industrial
Technologies (NYSE: AIT) today announced it has completed the
previously announced acquisition of Knox Oil Field Supply
(Knox), a distributor of oilfield
supplies and related services with 15 locations in Texas and one in New
Mexico. Based in San Angelo,
Texas, the business employs 140 people and has annual sales
of more than $100 million. The
Knox acquisition will be accretive
in fiscal 2015, providing incremental EPS of $0.05 to $0.07.
Applied also announced it has acquired Rodamientos y Derivados
del Norte S.A. de C.V. (RODENSA) of
Monclova, Coahuila, Mexico, and
Great Southern Bearings and Northam Bearings (GSB/Northam) of
Western Australia.
RODENSA distributes bearings, power transmission products, and
related parts and accessories from 10 locations in Mexico with an employee base of 95. The
company serves a broad customer base in the agriculture, industrial
and automotive sectors. GSB/Northam provides bearing and power
transmission products from two locations and serves agriculture and
timber industry markets, as well as general industrial customers.
Combined, RODENSA and GSB/Northam have approximately $20M in sales and will generate about
one cent earnings per share
accretion.
The three purchases were funded through a $120 million fixed-rate private placement
facility and additional borrowings under Applied's existing
revolving credit facility.
"We are excited to conclude the Knox acquisition and expand our oil and gas
market presence," said Neil A.
Schrimsher, President & Chief Executive Officer for
Applied. "Together with our recent Reliance Industrial Products and
Texas Oilpatch Services (TOPS) acquisitions, Knox significantly enhances our capabilities
to serve upstream oil and gas customers."
He continued, "The RODENSA and GSB/Northam businesses are an
excellent fit for Applied. They extend our global reach, further
enhance our bearing and power transmission product offering, and
provide new opportunities in Mexico and Western
Australia."
Todd A. Barlett, Applied's Vice
President – Acquisitions and Global Business Development, added,
"We are pleased to welcome Knox to
Applied, and we are excited about further building our business in
Mexico and Australia. RODENSA has a strong reputation and
brings us access to new industries in Mexico. GSB/Northam diversifies our customer
base and provides access to two new markets in Western Australia."
About Applied
With more than 560 facilities and 5,700
employee associates, Applied Industrial Technologies is a leading
industrial distributor that offers more than five million parts to
serve the needs of MRO and OEM customers in virtually every
industry. In addition, Applied provides engineering, design and
systems integration for industrial and fluid power applications, as
well as customized mechanical, fabricated rubber and fluid power
shop services. Applied also offers maintenance training and
inventory management solutions that provide added value to its
customers. Applied can be visited on the Internet at
www.applied.com.
This press release contains statements that are forward-looking,
as that term is defined by the Securities and Exchange Commission
in its rules, regulations and releases. Applied intends that such
forward-looking statements be subject to the safe harbors created
thereby. All forward-looking statements are based on current
expectations regarding important risk factors including trends in
the oil and gas sector of the economy, general economic conditions,
our ability to successfully integrate our acquired businesses, and
other risk factors identified in Applied's most recent periodic
report and other filings made with the Securities and Exchange
Commission. Accordingly, actual results may differ materially from
those expressed in the forward-looking statements, and the making
of such statements should not be regarded as a representation by
Applied or any other person that the results expressed therein will
be achieved. Applied assumes no obligation to update publicly or
revise any forward-looking statements, whether due to new
information, or events, or otherwise.
SOURCE Applied Industrial Technologies