Parker Hannifin to acquire Lord Corp for $3.67bn
The Parker Hannifin Corporation, a global market leader in motion and control technologies serving a wide range of customers in the industrial and aerospace verticals, announced on Monday that it will acquire Lord Corporation, an adhesives and coatings manufacturer headquartered in North Carolina.
The deal, which will see Parker pay a total cash consideration of US$3.67bn for Lord, aims to significantly increase the company’s portfolio of attractive margin, high growth companies. As well as coatings and high-spec adhesives, Lord is a leading manufacturer of mission-critical specialty materials, as well as vibration and motion control technologies.
Last year, Lord reported annual sales of approximately $1.1bn. The company currently employs 3,100 team members across 17 manufacturing and 15 research and development facilities globally.
Ed Auslander, President and CEO of Lord, commented, “With complementary business segments, coming together with Parker enables Lord to carry out our grander vision. 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.”
“This strategic transaction will reinforce our stated objective to invest in attractive margin, growth businesses, such as engineered materials, that accelerate us towards top-quartile financial performance,” said Tom Williams, Chairman and Chief Executive Officer of Parker. “LORD will significantly expand our materials science capabilities with complementary products, better positioning us to serve customers in growth industries and capitalize on emerging trends such as electrification and lightweighting. This transaction will meaningfully transform our portfolio. We anticipate a smooth closing of the transaction and integration of our two businesses.”
The deal is expected to close within four to six months, pending regulatory approval.