Parker Hannifin Corporation, a manufacturer of motion and control technologies, announced that it has entered into a definitive agreement to acquire LORD Corporation for approximately US$3.675 billion (A$5.22 billion) in cash. The transaction has been approved by the Board of Directors of both companies and is subject to customary closing conditions, including receipt of applicable regulatory approvals.
LORD, a privately-held company founded in 1924, makes products that are used in the aerospace, automotive and industrial markets, with annual sales of around US$1.1 billion (A$1.56 billion). LORD has 3100 employees at 17 manufacturing and 15 research and development operations worldwide.
“With complementary business segments, coming together with Parker enables LORD to carry out our grander vision,” said Ed Auslander, President and CEO of LORD. “Parker is already a large tier-one supplier in many areas, allowing our business lines immediate access to growth, additional markets, applications and new customers. In addition, the two companies are very much aligned when it comes to core values, great business acumen and cultural fit.”
Parker-Hannifin employs about 58,000 people globally. Its revenues last year topped $14.5 billion (A$20.56 billion).