Applied Industrial Technologies Acquires Automation, Inc.

Rhea-AI Summary

Applied Industrial Technologies (AIT) has acquired Automation, Inc., a company specializing in automation solutions such as machine vision and robotics. This strategic move aims to enhance AIT's automation offerings and expand its footprint in the U.S. Upper Midwest.

CEO Neil A. Schrimsher noted the acquisition aligns with AIT’s growth strategy and capitalizes on increasing demand for advanced automation technologies. Automation, Inc. brings valuable relationships and expertise beneficial for AIT's market expansion.

Positive

• Acquisition of Automation, Inc. enhances automation offerings.
• Strategic alignment with growth strategy and market focus.
• Increased customer demand for automation due to labor constraints.
• Expansion of footprint in key verticals and geographies.

Negative

• None.

Continuing Strategic Expansion of Automation Solutions

CLEVELAND--(BUSINESS WIRE)-- Applied Industrial Technologies (NYSE: AIT) today announced the acquisition of Automation, Inc., a provider of automation products, services, and engineered solutions focused on machine vision, collaborative and mobile robotics, motion control, intelligent sensors, pneumatics, and other related products and solutions. Terms of the transaction were not disclosed.

Neil A. Schrimsher, President & Chief Executive Officer for Applied, commented “Today’s announcement represents another key step in the continued expansion of our next generation automation offering. Automation, Inc. is a leading provider of emerging automation technologies across the U.S. Upper Midwest with advanced capabilities in machine vision, pneumatic automation, and value-added assembly services and engineered solutions. They bring established customer and supplier relationships, along with an experienced team highly regarded for their technical and application expertise that aligns with our growth strategy, market focus, and value proposition.”

Automation, Inc. is based in Minneapolis, Minnesota, and operates with a team of more than 50 associates from one location. The Company serves customers primarily across pharmaceutical, manufacturing, life sciences, consumer products, and other various industrial industries.

Mr. Schrimsher added, “Our automation platform is gaining notable traction within our served markets. Secular demand tailwinds are building as customers manage through structural labor constraints and evolving production considerations to support long-term growth and supply chain initiatives. We are well positioned to capitalize on this opportunity given our application and engineering expertise, as well as accelerated adoption of advanced technologies aligned with our product focus including collaborative and mobile robots, machine vision, and digital solutions. The addition of Automation, Inc. will further optimize this position, including expanding our footprint across key verticals and geographies, while supplementing our value-added services and cross-selling efforts. Overall, we see significant potential and synergies building across our automation platform that stand to enhance our growth and earnings potential long term. We welcome Automation, Inc. to Applied, and look forward to leveraging their capabilities going forward.”

About Applied^®
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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221102005266/en/

Ryan D. Cieslak

Director – Investor Relations & Treasury

216-426-4887 / rcieslak@applied.com

Source: Applied Industrial Technologies, Inc.

FAQ

What is the recent acquisition announced by Applied Industrial Technologies?

Applied Industrial Technologies has acquired Automation, Inc., expanding its automation solutions portfolio.

How will the acquisition of Automation, Inc. impact AIT's stock?

The acquisition is expected to enhance AIT's growth and earnings potential, positively impacting its stock in the long term.

What are the potential benefits of the Automation, Inc. acquisition for AIT?

The acquisition may lead to market expansion, synergies in services offered, and enhanced customer relationships.

When was the Automation, Inc. acquisition announced?

The acquisition was announced today, as part of AIT's strategic expansion efforts.