Parker Hannifin Corporation has completed its acquisition of LORD Corporation for approximately $3.675 billion in cash. The strategic transaction creates a combined organization with strong materials science capabilities, electrification and aerospace product offerings that are highly complementary.
The transaction is estimated to offer increased organic growth, higher EBITDA margins, stronger cash flow and an addition to the earning per share of Parker. These will be excluding one-time costs and deal-related amortization. LORD will strengthen the portfolio of Parker of attractive margin and high growth businesses, and significantly expand materials science capabilities with complementary products of Parker. This position Parker better to serve customers in growth industries and capitalize on emerging trends such as electrification and lightweight option.
“We are excited about the opportunity to strengthen our technology portfolio by significantly bolstering our position in engineered materials,” said Tom Williams, Chairman and Chief Executive Officer of Parker. “Acquiring LORD is expected to improve operating margins and its organic growth rate will help improve the resiliency of the Parker portfolio, strengthening our ability to achieve top quartile financial performance.”
“The LORD acquisition will allow us to deliver greater value to our existing and future customers,” said Andy Weeks, Parker’s Engineered Materials Group President. “We welcome the talented LORD team who have built a high performing business with strong product brands such as Chemlok®. Going forward, we will work collaboratively to integrate our businesses by leveraging the best ideas, capabilities, and practices of both organizations.”
An integrated team is planning the details so that a smooth transition between Parker and LORD can take place.
Source: Parker Hannifin