Applied Industrial Technologies Completes Acquisition of SKF's Distribution Businesses in Australia and New Zealand
CLEVELAND- Applied Industrial Technologies (NYSE: AIT) announced today it has finalized the acquisition of SKF Group's company-owned distribution business in Australia and New Zealand ("SKF Distribution").
The SKF Distribution acquisition expands Applied's global capabilities, adding 29 service centers in Australia and eight in New Zealand, supported by a central warehouse in each country and a headquarters in Melbourne. As one of the largest bearing suppliers in these markets, SKF Distribution also supplies seals, lubrication products, and power transmission products. The businesses employ more than 200 people and have an annual sales run rate of approximately US$83 million.
Neil A. Schrimsher, Applied's Chief Executive Officer, said, "We are excited to expand our global reach with this strategic acquisition which will be accretive in the first year. Australia and New Zealand are attractive markets with growing economies. Considering the products offered, the vertical markets served, the operational capabilities, and the shared commitment to providing value-added solutions to our customers, the SKF businesses are an excellent fit."
He continued, "We see significant growth prospects through the addition of complementary product lines and solutions. Moreover, we go into this integration with SKF - a strategic vendor partner that has always been one of our largest suppliers."
Todd A. Barlett, Vice President - Acquisitions and Global Business Development, said, "The SKF businesses offer us a new foundation for growth. The 37 locations provide broad geographic coverage with strong positions in mining, steel, pulp and paper, forestry, agriculture, construction, food and beverage, and other vertical markets. The businesses have significant preferred supplier arrangements with major customers and enjoy a solid reputation as a solutions provider."
About Applied
With approximately 500 facilities and 4,900 employee associates, Applied Industrial Technologies is a leading industrial distributor that offers more than 4 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 and storeroom management solutions that provide added value to its customers. Applied can be visited on the Internet at www.applied.com.
About SKF
SKF is a leading global supplier of bearings, seals, mechatronics, lubrication systems, and services which include technical support, maintenance and reliability services, engineering consulting and training. SKF is represented in more than 130 countries and has over 15,000 distributor locations worldwide. Annual sales in 2011 were SEK 66,216 million and the number of employees was 46,039. Visit SKF at www.skf.com.
SOURCE Applied Industrial Technologies
CONTACT: Julie Kho, Applied Industrial Technologies, 1 Applied Plaza, Cleveland, OH 44115-5020, +1-216-426-4483, jkho@applied.com
Web Site: www.applied.com
