Applied Industrial Technologies to acquire FCX Performance, Inc.

|About: Applied Industrial Tech... (AIT)|By:, SA News Editor

Applied Industrial Technologies (NYSE:AIT) reached a definitive agreement to acquire FCX Performance, Inc. for total consideration of ~$768M, and is expected to close within 30 days.

The transaction will be financed with a new credit facility comprised of a $780M Term Loan A and $250M revolver.

The acquisition is anticipated to contribute ~$550M in sales and $68M in EBITDA in the first 12 months of Applied ownership, prior to recognition of one-time transaction expenses and the impact of purchase accounting adjustments.

The transaction is expected to be accretive in fiscal year 2019 following recognition of related one-time transaction costs in fiscal year 2018.

Press Release

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