Parker Hannifin Completes CLARCOR Acquisition
Creates most diverse global provider of filtration products, offering customers a single streamlined source for filtration solutions
CLEVELAND -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today completed its acquisition of CLARCOR Inc., a major manufacturer of filtration products, for approximately $4.3 billion in cash, including the assumption of net debt. The strategic transaction creates a combined organization with a comprehensive portfolio of filtration products and technologies, offering customers a single streamlined source for all their purification and separation needs.
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.
In the highly complementary combination, 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 respected 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.
“This is an exciting new journey as we work together to build the next generation of filtration,” said Tom Williams, Chairman and Chief Executive Officer of Parker. “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.”
“The combination deeply expands our ability to help make our world cleaner and safer while equipping our team members with new opportunities to innovate and grow,” said Rob Malone, Parker’s Filtration Group President. “The acquisition also offers significant operating synergies from our combined strengths to better serve our customers.”
An integration team has been formed including employees from both Parker and CLARCOR, and a detailed integration plan is underway designed to capture synergies and allow for a smooth transition of the two organizations.
About Parker Hannifin
Parker Hannifin is a Fortune 250 global leader in motion and control technologies. For 100 years the company has engineered the success of its customers in a wide range of diversified industrial and aerospace markets. Parker has increased its annual dividend per share paid to shareholders for 60 consecutive fiscal years, among the top five longest-running dividend-increase records in the S&P 500 index. Learn more at www.phstock.com or @parkerhannifin.