Applied Industrial to get $1.03 billion credit facilities with FCX buy

By Sara Rosenberg

New York, Jan. 9 – Applied Industrial Technologies plans on getting $1.03 of credit facilities to fund its acquisition of FCX Performance Inc., according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

The facilities consist of a $250 million revolver and a $780 million term loan A.

Under the agreement, FCX is being bought from Harvest Partners LP for about $768 million, subject to customary adjustments.

Leverage will be around 3.65 times, but is anticipated to drop to less than 3 times in year two given the positive cash generation profile and the benefit of the lower federal tax rate.

Closing is expected within 30 days, subject to completion of the Hart-Scott-Rodino waiting period and satisfaction of other customary conditions.

Applied Industrial Technologies is a Cleveland-based distributor of bearings, power transmission products, fluid power components and other industrial supplies. FCX is a Columbus, Ohio-based distributor of specialty process flow control products and services.

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