Applied Industrial Technologies announced today that it has entered into a definitive agreement to acquire Hydradyne, LLC (Hydradyne), a leading provider of fluid power solutions and value-added services. This acquisition represents a significant expansion of Applied’s Engineered Solutions segment and further strengthens its position as a key player in the fluid power and motion control industry.
Hydradyne, headquartered in Dallas, Texas, is one of the largest distributors of fluid power and motion control systems in the United States. The company has built a strong reputation for its expertise in hydraulics, pneumatics, electromechanical systems, instrumentation, filtration, and fluid conveyance. With nearly 500 employees across 33 locations in the Southeastern U.S., Hydradyne specializes in the design, fabrication, assembly, installation, repair, and support of fluid power systems. Its comprehensive services and solutions play a crucial role in powering and controlling essential stationary and mobile equipment across various industrial sectors.
The company serves a broad range of industries with a balanced mix of Maintenance, Repair, and Overhaul (MRO) and Original Equipment Manufacturer (OEM) applications. Hydradyne’s product offerings are vital to key industrial, commercial, and emerging growth sectors, including those driving innovation in fluid power systems, automation, and electrification. The acquisition is expected to generate approximately $260 million in sales and $30 million in EBITDA before anticipated synergies, as well as be accretive to Applied’s earnings per share (EPS) within the first 12 months, excluding transaction-related expenses and purchase accounting adjustments.
Neil A. Schrimsher, President and CEO of Applied Industrial Technologies, expressed enthusiasm about the acquisition, stating, “We are excited to announce the acquisition of Hydradyne, which marks an important step in expanding our Engineered Solutions segment and solidifying our leadership in the technical industry. Hydradyne has always been an impressive company, with a strong team and a market approach that aligns perfectly with our strategy and long-term goals. Their technical expertise, commitment to customer service, and operational excellence will complement our existing capabilities and enhance our footprint in the growing Southeastern U.S. region. This acquisition strengthens our position in fluid power systems and automation technologies, offering us the opportunity to accelerate cross-selling and market penetration.”
Schrimsher further emphasized that Hydradyne’s capabilities would enhance Applied’s ability to serve sectors undergoing rapid technological change, such as reshoring, equipment modernization, power management, connectivity, and electrification. This transaction will allow us to leverage our combined technical expertise to deliver greater value to our customers, especially in areas where demand for advanced fluid power and motion control systems is growing, he said. Together, we will be well-positioned to meet the evolving needs of the industry and generate long-term value for all stakeholders.
Lon Jennings, President of Hydradyne, also shared his excitement about the acquisition, stating, Today marks an important milestone for Hydradyne. Joining forces with Applied will accelerate our growth potential by combining our complementary capabilities, innovative solutions, and industry leadership. We carefully considered various options and concluded that Applied is the ideal strategic partner for our employees, customers, and suppliers. Applied’s values-based culture, financial strength, and leadership in distribution align perfectly with our approach to the market, and we look forward to what we can accomplish together as one team.
Jennings also reflected on the legacy of Hydradyne’s team, noting, “I am immensely proud of the accomplishments of the Hydradyne team over the years. Our success has been built on a foundation of hard work, innovation, and a customer-first mentality, and I believe that by joining Applied, we will be able to accelerate our growth and bring even more value to our customers and partners.”
The acquisition of Hydradyne is a strategic move for Applied Industrial Technologies, allowing the company to expand its reach, enhance its product and service offerings, and position itself for continued success in a rapidly evolving industry. The integration of Hydradyne into Applied’s operations is expected to create significant synergies, bolster Applied’s position in the fluid power and motion control markets, and contribute to the company’s growth in key verticals across the United States.
As the acquisition moves forward, Applied looks forward to welcoming the Hydradyne team and continuing to build on the legacy of both organizations to create lasting value for all stakeholders.
