Strategic Investment Within Applied’s Core Service Center Network
Applied Industrial Technologies (NYSE: AIT) today announced the acquisition of both Bearing Distributors, Inc. (Bearing Distributors) and Cangro Industries, Inc. (Cangro), providers of bearings, power transmission, industrial motion, and related service and repair capabilities. Bearing Distributors is based in Columbia, South Carolina, while Cangro is based in Long Island, New York. Terms of the transactions were not disclosed.
Neil A. Schrimsher, President & Chief Executive Officer for Applied, commented, “We welcome Bearing Distributors and Cangro to Applied’s U.S. Service Center network as we continue to bolster our local presence and provide our customers with leading technical support. We have meaningfully enhanced our Service Center operations in recent years through strategic process improvements, systems investments, and talent additions. At the same time, the long-term demand outlook in our core Service Center network has never been stronger, reflecting emerging secular tailwinds around reshoring, customer capex investments, and technical supply chain requirements, as well as share gain opportunities tied to our service capabilities and cross-selling potential. Both Companies will immediately strengthen our position to fully leverage these tailwinds now and in the coming years.”
Mr. Schrimsher added, “With locations across the U.S. Southeast and Upper Northeast, the acquisitions will enhance our footprint and strategic growth initiatives within these important regions. This includes strengthening relationships with leading suppliers and increasing Applied’s local customer access, as well as accelerating our strategic penetration in key emerging market verticals. Under Applied, both organizations will benefit from expanded product lines, and access to our leading engineered solutions across our Fluid Power, Flow Control, and Automation operations. Further, our approach will include a focus on operational excellence to maximize performance and strategic alignment. We look forward to seeing their capabilities augment our collective efforts and value proposition moving forward.”
Bearing Distributors operates with a team of more than 95 associates from 12 locations. Cangro operates with a team of more than 20 associates from two locations. The Companies serve customers primarily across core U.S. Service Center industries including food and beverage, pulp and paper, chemical, pharmaceutical, automotive, and other industrial markets. Combined, the Companies are expected to generate annual sales of approximately $50 million in the first year.
Applied Industrial Technologies is a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies. Our leading brands, specialized services, and comprehensive knowledge serve MRO and OEM end users in virtually all industrial markets through our multi-channel capabilities that provide choice, convenience, and expertise. For more information, visit www.applied.com.
Ryan D. Cieslak
Director – Investor Relations & Treasury
216-426-4887 / email@example.com