Engineering company Parker-Hannifin to buy Clarcor in $4.3 billion deal

jeudi 1 décembre 2016

Parker-Hannifin, which makes motion and control systems for the industrial and aerospace markets, said on Thursday it would buy air filtration systems maker Clarcor for about $4.3 billion, including debt.

Parker-Hannifin shares were up 1.4 percent in Thursday premarket trade, while Clarcor shares jumped to more than 15 percent.

Parker-Hannifin's offer of $83 per share represents a premium of about 17.8 percent to Clarcor's closing price on Wednesday. Clarcor shares were up about 15 percent at $81 in premarket trading on Thursday.

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.

Clarcor's strong presence in the United States and high percentage of recurring after-market sales would benefit Parker-Hannifin, the company's Chief Executive Tom Williams said in a statement.

Franklin, Tennessee-based Clarcor had total current liabilities of $302.8 million of Aug. 27. It had annual sales of about $1.48 billion in the year ended Nov. 28, 2015.

Parker-Hannifin said it plans to finance the deal using cash and new debt.

Morgan Stanley is Parker-Hannifin's financial adviser and Goldman Sachs is Clarcor's adviser.

CNBC contributed to this report.


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Engineering company Parker-Hannifin to buy Clarcor in $4.3 billion deal

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