Parker Hannifin Corporation completes its acquisition of Clarcor Inc., a manufacturer of filtration products, for approximately $4.3 billion in cash, including the assumption of net debt, according to the company. The transaction reportedly creates a combined organization with a comprehensive portfolio of filtration products and technologies.
Under the definitive agreement signed on December 1, 2016, Parker has purchased all outstanding Clarcor shares for $83 per share in cash. The transaction is expected to be accretive to Parker’s cash flow, earnings per share and earnings before tax, interest, depreciation and amortization, after adjusting for one-time costs, according to the company.
Clarcor joins Parker’s Filtration Group and provides Parker with additional proprietary media, industrial and process filtration products and technologies, as well as a broad portfolio of replacement filters. It also adds more than a dozen Clarcor brands, including Clarcor, Baldwin, Fuel Manager, PECOFacet, Airguard, Altair, BHA, Clearcurrent, Clark Filter, Hastings, United Air Specialists, Keddeg and Purolator. In addition, Parker possesses strong relationships with original equipment manufacturers and customers in international markets while Clarcor contributes a solid U.S. presence, especially for recurring sales in the aftermarket, according to the company.
“Our enhanced filtration presence is expected to add resilience to our bottom line, improve operating margins, and enable us to meet long-term growth goals, strengthening our ability to achieve top quartile financial performance,” says Tom Williams, chairman and chief executive officer of Parker.
For more information, visit: www.parker.com
