Market Overview

Helios Technologies Completes Acquisition of Custom Fluidpower

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  • Custom Fluidpower is a Leading Australian Fluid Power
    Distributor and Custom-Design Solutions Provider
  • Strategically Provides Helios Technologies Access to High Growth
    APAC Market

Helios
Technologies
(formerly known as Sun Hydraulics) (Nasdaq: SNHY)
("Helios" or the "Company"), a global industrial technology leader that
develops and manufactures solutions for both the hydraulics and
electronics markets, today announced 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, commented, "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, noted, "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.

About Helios Technologies
Helios Technologies is the
business name for Sun Hydraulics Corporation, a publicly-listed company
on the Nasdaq Global Stock Market (SNHY). Helios Technologies is a
global industrial technology leader that develops and manufactures
hydraulic and electronic control solutions for diverse markets. The
Company does business through its operating subsidiaries around the
world, including Sun Hydraulics, LLC, Enovation Controls, LLC and Faster
S.p.A. Through its Hydraulics segment, the Company serves diverse
markets including material handling, construction equipment,
agriculture, specialized vehicles, energy and others through its Sun
Hydraulics and Faster Group companies, providing high-performance
screw-in hydraulic cartridge valves and manifolds as well as
quick-release hydraulic coupling solutions. Through its Electronics
segment, the Company provides electronic control solutions through
Enovation Controls for recreational and off-highway vehicles, as well as
industrial stationary and mobile power equipment. Helios Technologies
and information about its associated companies is available online at www.heliostechnologies.com.

FORWARD-LOOKING INFORMATION

This news release contains "forward‐looking statements" within the
meaning of Section 21E of the Securities Exchange Act of 1934.
Forward‐looking
statements involve risks and uncertainties, and actual results may
differ materially from those expressed or implied by such statements.
They include statements regarding the intent, belief or current
expectations, estimates, vision or projections of Sun Hydraulics
Corporation ("Helios" or the "Company"), its directors or its officers
about the Company and the industry in which it operates, and assumptions
made by management, and include among other items, (i) the Company's
strategies regarding growth, including its intention to develop new
products and make acquisitions; (ii) the Company's financing plans;
(iii) the Company's expectations regarding our sales, expenses, gross
margins and other results of operations; (iv) trends affecting the
Company's financial condition or results of operations; (v) the
Company's ability to continue to control costs and to meet its liquidity
and other financing needs; (vi) the declaration and payment of
dividends; (vii) the Company's ability to respond to changes in customer
demand domestically and internationally, including as a result of
standardization; and (viii) potential challenges relating to changes in
and compliance with governmental laws and regulations affecting our U.S.
and international business. Although the Company believes that its
expectations are based on reasonable assumptions, it can give no
assurance that the anticipated results will occur.
Important
factors that could cause the actual results to differ materially from
those in the forward‐looking statements include, among other items, (i)
the economic cyclicality of the capital goods industry in general and
the hydraulics industry in particular, which directly affect customer
orders, lead times and sales volume; (ii) fluctuations in global
business conditions, including the impact of economic recessions in the
U.S. and other parts of the world, (iii) conditions in the capital
markets, including the interest rate environment and the availability of
capital; (iv) changes in the competitive marketplace that could affect
the Company's revenue and/or costs, such as increased competition, lack
of qualified engineering, marketing, management or other personnel, and
increased labor and raw materials costs; (v) risks related to the
integration of the businesses of the Company, Enovation Controls and
Faster Group; (vi) changes in technology or customer requirements, such
as standardization of the cavity into which screw‐in cartridge valves
must fit, which could render the Company's products or technologies
noncompetitive or obsolete; (vii) new product introductions, product
sales mix and the geographic mix of sales nationally and
internationally; and (viii) changes relating to the Company's
international sales, including changes in regulatory requirements or
tariffs, compliance with anti-corruption laws and trade laws, including
export and import compliance, trade or currency restrictions,
fluctuations in exchange rates, and tax and collection issues. Further
information relating to factors that could cause actual results to
differ from those anticipated is included but not limited to information
under the heading Item 7. "Management's Discussion and Analysis of
Financial Conditions and Results of Operations" in the Company's Form
10‐Q for the quarter ended June 30, 2018, and Item 1. "Business" and
Item 1A. "Risk Factors" in the Company's Form 10-K for the year ended
December 30, 2017. The Company disclaims any intention or obligation to
update or revise forward‐looking statements, whether as a result of new
information, future events or otherwise.

This news release will discuss some non-GAAP financial measures,
which the Company believes are useful in evaluating our performance.
You
should not consider the inclusion of this additional information in
isolation or as a substitute for results prepared in accordance with
GAAP.

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