Applied Industrial Buys TMS, Stanley Proctor; Initiates Annual Earnings Outlook Below View

(RTTNews) - Applied Industrial Technologies, Inc. (AIT), an industrial engineering equipment provider, Thursday announced in its fourth-quarter earnings report that it has acquired Total Machine Solutions or TMS and Stanley Proctor. The financial terms of the transaction are not revealed.

The two companies are expected to generate combined annual sales of around $17 million in the first year.

Neil Schrimsher, CEO of Applied, said: "TMS will supplement our growth potential in the U.S. Upper Northeast with local customer focus and capabilities across the Food & Beverage vertical. Stanley Proctor brings specialization and capabilities in the design and assembly of Hydraulic Power Units, as well as fluid power rebuild and repair services."

TMS is a provider of electrical and mechanical power transmission products and solutions including bearings, drives, motors, and others. Stanley Proctor provides hydraulic, pneumatic, measurement, control, and instrumentation components, as well as fluid power engineered systems.

Looking ahead, Applied has initiated an annual outlook which incorporates current economic uncertainty and assumption that end-market demand slows further through the first-half.

For the full-year, the company expects earnings per share of $9.20 to $9.95, based on the assumption for a decline in total sales of 2.5 percent to up 2.5 percent.

On average, five analysts, polled by Thomson Reuters expect the firm to earn $10.1 per share, for the year. Analysts' estimates typically exclude special items.