SARASOTA, FL, August 4, 2025— Helios Technologies, Inc. (NYSE: HLIO) (“Helios” or the “Company”), a global leader in highly engineered motion control and electronic controls technology, announced today that it has executed a definitive agreement for the sale of Custom Fluidpower (“CFP”) to Questas Group (“Questas”). The all-cash transaction valued at approximately $83 million AUD (~$54 million USD) is subject to final working capital and other customary closing adjustments. The transaction value represents an increase of approximately $48 million AUD 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.”

“We are delighted to welcome CFP into the Questas group of companies. The CFP team brings deep expertise in system design, custom manifolds, cartridge valves, and hydraulic-release brakes—solutions we previously sourced externally. CFP strengthens our value proposition to customers, significantly advancing our ability to serve the full hydraulics lifecycle,” said Mark Taylor, Group Chief Executive Officer of Questas Group.

“Questas has extensive experience in the Australian hydraulics market and carve-out expertise, which we believe will unlock new potential for the CFP business. This transaction allows us to focus on our core manufacturing capabilities in the APAC region while leveraging CFP as our key distribution partner to service the Australian market. We remain committed to our ‘in the region for the region’ strategy and believe the structure going forward positions us to better meet customer needs in Australia and across the entire APAC region. We also believe the move will help provide broader growth opportunities for the CFP team and position CFP to deliver enhanced value for its customers with Questas’ backing,” Mr. Bagan concluded.

Helios expects to use the net proceeds from the transaction consistent with its stated capital allocation priorities, including debt repayment, disciplined organic investment into the business, and return of capital to shareholders.

Helios will begin reporting CFP as held for sale in the Company’s consolidated financial statements for the second quarter of 2025 through the closing date.

The Company expects the transaction to close in the next 60 to 90 days, subject to the satisfaction of customary closing conditions.