By Editors of Power Engineering
Parker Hannifin Corporation, a maker of motion and control technologies, announced it has completed its acquisition of CLARCOR Inc., a major manufacturer of filtration products, for $4.3 billion.
The purchase 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.
CLARCOR now becomes part of 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.
The merger will also combine Parker’s relationships with original equipment manufacturers and customers in international markets with CLARCOR’s 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 CEO 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 allow for a smooth transition of the two organizations.