Parker To Acquire Filtration Specialist Clarcor
Parker Hannifin Corp. and Clarcor Inc.announced that the companies have entered into a definitive agreement underwhich Parker will acquire Clarcor for approximately $4.3 billion in cash,including the assumption of net debt.
Under the terms of the agreement, Parkerwill purchase all of the outstanding shares of Clarcor for $83 per share incash. This represents a premium of approximately 17.8% to Clarcor’s closingshare price on Nov. 30 and a premium of approximately 29.2% to Clarcor’s volumeweighted average share price over 90 days and a premium of approximately 17.1%to the company’s all-time and 52-week high. The transaction has beenunanimously approved by the boards of each company.
Headquartered in Franklin, Tenn., Clarcormanufactures mobile, industrial and environmental filtration products withannual sales of approximately $1.4 billion and 6000 employees worldwide. Itadds an array of industrial air and liquid filtration products and technologiesto Parker’s filtration portfolio, Parker said.
“This strategic transaction is consistentwith our stated objective to invest in businesses that accelerate Parkertowards our goal of top quartile financial performance,” said Tom Williams,chairman and chief executive officer of Parker. “The combination of Parker andClarcor is highly complementary and offers a great opportunity to combine ourstrength in international markets and OEMs with Clarcor’s strong U.S. presenceand high percentage of recurring sales in the aftermarket.”
Parker said it expects to benefit fromincreased recurring revenue streams as approximately 80% of Clarcor’s revenueis generated through aftermarket sales. The addition of Clarcor is expected tosignificantly increase recurring revenue in Parker’s Filtration Group. Clarcorbrands including Clarcor, Baldwin, Fuel Manager, PecoFacet, Airguard, Altair,BHA, Clearcurrent, Clark Filter, Hastings, United Air Specialists, Keddeg andPurolator.
Upon closing of the transaction, Clarcorwill be combined with Parker’s Filtration Group.