Parker-Hannifin to buy air filtration systems maker Clarcor for $4.3 bn

Parker-Hannifin Corp today struck a deal to buy air filtration systems maker Clarcor Inc for about $4.3 billion, including debt.

The deal comes 4 months after Parker-Hannifin acquired Germany's Jäger Automobil-Technik GmbH and Jäger Automotive Polska Sp. z.o.o.  in order to expand its processing capabilities for engineered materials.

Parker-Hannifin, a maker of motion and control systems for the industrial and aerospace markets, is offering to pay $83 per share, a premium of about 17.8 per cent to Clarcor's Wednesday closing price of $70.45.

Parker-Hannifin intends to finance the deal through cash and new debt.

Post closing, Clarcor would become part of Parker's Filtration Group.

Parker-Hannifin said that it "expects to realize annual run rate cost synergies of approximately $140 million three years after closing through a variety of initiatives," including the consolidation of the companies' supply chains.

Tennessee-based Clarcor manufactures filtration systems and packaging materials. It has approximately 30 manufacturing and distribution sites in the US.

It has annual sales of about $1.4 billion, 6,000 employees worldwide and has total current liabilities of $302.8 million.

Parker-Hannifin, whose motion and control systems are used in air conditioners, refrigerators and the transportation industry, said the deal would add a broad range of industrial air and liquid filtration products to its portfolio.

Cleveland, Ohio-based Parker-Hannifin is one of the world's largest maker of motion control technologies, including aerospace, climate control, electromechanical, filtration, fluid and gas handling, hydraulics, pneumatics, process control, and sealing and shielding.

The company employs about 58,000 people globally and has annual sales of $13.2 billion.