Finally, a takeover that is 'good news' for Saskatchewan.

Usually when mergers, acquisitions and takeovers occur, such activity has a detrimental effect somewhere down the line. And more often than not, that somewhere down the line tends to be in smaller markets, like Saskatchewan. Thus, such transactions are oftentimes viewed with a perception that is somewhat less than enthusiastic, particularly in these parts.

A stark contrast to this rule is the acquisition of a group of companies including Bearing & Transmission, HyPOWER, All Agro Parts and B & T Rubber by Applied Industrial Technologies Ltd. (AIT). The Canadian subsidiary of Applied Industrial Technologies, AIT Ltd. is headquartered in Saskatoon and operates 21 Bearing & Transmission service centres, 14 HyPOWER service centres, three All Agro Parts and three B & T Rubber service centres throughout Western Canada. Together these facilities have 396 employees and generate annual sales of approximately $125 million.

"We are the Canadian headquarters, even though at this point we only have offices from Vancouver Island to Thunder Bay," says Gerry Rein, president and chief operating officer of AIT Ltd. "AIT Canada is a Canadian company; it isn't moving."

"The difficult part for a corporation outside of Saskatchewan is to actually think of maintaining a head office in Saskatchewan," Rein continues. "That's a big leap for them to make. But in the North American business community in which we operate, the names of Bearing and Transmission and HyPOWER are very well thought of; our names are very prominent around North America."

Rein points out that all six key management positions in the company are being filled internally, by management that held various positions with the former companies. In addition to Rein, who was previously vice-president of the HyPOWER Group, Grant Habicht was named as vice-president and chief administrative officer of AIT Canada. Other appointments included Peter Noyes as vice-president, information systems, Ron Sowinski, vice-president, finance and controller, Russ Letkeman, vice-president, HyPOWER Systems Group and Bob Rink, vice-president, Bearing and Transmission Group.

"As Applied Industrial Technologies Ltd. positions itself for growth within all parts of Canada, it is critical that its leaders have extensive knowledge and understanding of customers in all marketplaces," said Todd Bartlett, Applied's vice-president for global business development. "With more than 70 years combined experience in providing Western Canadian customers with fluid power, rubber products, bearings and power transmission components, Gerry and Grant are well suited for their respective positions."

Clearly AIT recognized the inherent expertise that B and T, HyPOWER et al bad to offer their company. Perhaps their decision, and surely imminent success, will prompt future mergers to think likewise.