Helios Technologies (formerly known as Sun Hydraulics), a global industrial technology leader that develops and manufactures solutions for both the hydraulics and electronics markets, announces that it acquired the shares of Custom Fluidpower Pty Ltd (CFP) for AUD 35 million (approximately $26 million) on August 1, 2018. The acquisition was funded using cash (approximately $9.3 million) as well as shares of SNHY common stock (approximately 333,000 shares).
Custom Fluidpower is Australia’s largest independently-owned fluid power solutions and service provider, serving a broad array of industrial end markets, including mining, material handling, agriculture, construction, energy/oil & gas and others. Headquartered in Newcastle and servicing customers from its eight branches across Australia, the company provides total engineered solutions and value-add services, including electronics, innovative complete system solutions, manifolds and intelligent braking systems as well as other products.
Wolfgang Dangel, Helios Technologies' President and Chief Executive Officer, comments, “While this is a relatively small, ‘bolt-on’ acquisition for us, it is strategically significant. CFP is energized by an innovative culture which is an essential component of our acquisition criteria. Geographically, the business provides a vital stepping stone from which we can further build our presence in the growing Asia-Pacific region and, specifically, Southeast Asia.”
Graeme Vennell, Custom Fluidpower’s Chief Executive Officer, notes, “We are eager to join the Helios team and see many opportunities ahead together. Having grown to become Australia’s largest fluid power solutions provider through differentiated engineering, service and electro-fluidpower design capability, we look forward to further advancing our market presence in Asia-Pacific as part of Helios.”
Custom Fluidpower recorded sales of AUD 62 million (approximately $46 million) and an EBITDA margin of approximately 9.7% for its fiscal year ended June 30, 2018. The acquisition is expected to be EPS accretive in year one. Custom Fluidpower will be reported as part of Helios’ Hydraulics Segment.
Helios Technologies’ financial advisor for the transaction was Morgan Stanley. DLA Piper acted as legal advisor.