Applied Industrial Technologies to Acquire Distribution Businesses of SKF in Australia and New Zealand


Expands Global Capabilities

CLEVELAND, April 25, 2012 - Applied Industrial Technologies (NYSE: AIT) today announced a definitive agreement to acquire SKF's company-owned distribution businesses in Australia and New Zealand ("SKF Distribution"). The acquisition is expected to be completed by July 1, 2012.

SKF Distribution supplies bearings, seals, lubrication products, and power transmission products through 29 Australian service centers and eight New Zealand locations, all wholly owned. The service centers are supported by central warehouses in Australia and New Zealand and a headquarters in Melbourne. SKF Distribution employs 225 people and had 2011 pro forma sales of approximately US$82 million (AUD$79 million).

Neil A. Schrimsher, Applied's Chief Executive Officer, said, "We are excited to expand our global capabilities and global reach. Australia and New Zealand are attractive markets offering growing economies, targeted vertical markets and many common global customers. The SKF Distribution business is an excellent fit, especially considering our operational and cultural similarities along with the shared commitment to providing value-added solutions to our customers. Moreover, the nearly ninety-year relationship between Applied and SKF dates back to the origins of our company, and SKF has always been one of Applied's largest manufacturer-partners. We look forward to serving SKF as a distribution partner in Australia and New Zealand, and we see significant growth prospects through the addition of complementary product lines and solutions. Our expectation is that this acquisition will be accretive in the first year."

"SKF Distribution provides broad geographic coverage of Australia and New Zealand with strong positions in mining, steel, pulp and paper, forestry, agriculture, building construction, and food and beverage industries," said Todd A. Barlett, Vice President - Acquisitions and Global Business Development. "The business has significant preferred supplier arrangements with major customers and enjoys a solid reputation as a solutions provider. SKF is one of the largest bearing suppliers in the Australia and New Zealand markets, providing an excellent foundation for growth."

About Applied

With approximately 480 facilities and 4,600 employee associates, Applied Industrial Technologies is a leading industrial distributor that offers more than 4 million parts critical to the operations 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, plus solutions to meet inventory and storeroom management needs that help provide enhanced value to its customers. For its fiscal year ended June 30, 2011, Applied posted sales of $2.2 billion. 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.

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