Helios to sell Hydraulic Fluid Power Solutions and Service Provider business

Helios Technologies (HLIO) announced that it has executed a definitive agreement for the sale of Custom Fluidpower to Questas Group. The all-cash transaction valued at approximately A$83M, or roughly $54M, is subject to final working capital and other customary closing adjustments. The transaction value represents an increase of approximately A$48M above the acquisition price paid for CFP by the Company in August 2018. Questas, is headquartered in Sydney, Australia, and has approximately 850 employees across 37 locations. Helios will also enter into a long-term exclusive distribution agreement with Questas, subject to annual growth targets tied to market conditions, assuring the continuity of Sun Hydraulics’ strategic position in the Australian hydraulics market through CFP’s extensive engineering, distribution, and service network. “This planned divestiture of CFP demonstrates our commitment to value creation as we refine our operating model, instilling financial discipline and driving improved returns on invested capital,” said Sean Bagan, President, Chief Executive Officer, and Chief Financial Officer of Helios. “Since Helios’ purchase of the business in 2018, CFP’s sales have expanded every year growing to $92 million AUD ($61 million USD) in 2024 and impressively earnings have more than doubled during that same period. As we assess our business models, we recognize that its position as a leading fluid power distributor and service provider aligns more effectively with our value-added distribution customer base. We are excited that CFP will remain an ongoing customer and continue to build upon the long-standing relationship with Sun Hydraulics. I would like to thank the employees of CFP and recognize them for their dedication and successful efforts in growing the business. While the divestiture will reduce Helios’ sales and earnings run rates, it will improve margin rates within our Hydraulics segment and at a consolidated level.”