Parker Hannifin to Buy Filtration Maker Clarcor
01 Dezember 2016 - 2:47PM
Dow Jones News
By Austen Hufford
Industrial conglomerate Parker Hannifin Corp. said it would buy
filtration maker Clarcor Inc. for about $4 billion.
Parker Hannifin is paying $83 a share, an 18% premium to
Clarcor's closing price Wednesday, and is funding the deal with
cash and debt. Clarcor shares rose 15% in premarket trading. Parker
Hannifin shares were inactive.
The companies valued the deal at $4.3 billion including
debt.
Parker expects the deal to add to earnings per share, after
certain costs are taken out, and expects annual cost synergies of
about $140 million three years after closing.
Franklin, Tenn.-based Clarcor makes mobile, automotive,
industrial and environmental filtration products with annual sales
of about $1.4 billion. Clarcor will merge with Parker's filtration
group. Parker Chief Executive Tom Williams said the deal combines
Parker's strength in international markets and original equipment
manufacturers with Clarcor's U.S. presence and recurring sales.
The deal boosts Parker's recurring revenue, as 80% of Clarcor's
sales come from the aftermarket.
The deal is expected to close by the first quarter of Parker's
2018 fiscal year. Its 2017 first quarter ended in September. It is
subject to customary closing conditions, including approval by
Clarcor shareholders and regulators.
Write to Austen Hufford at austen.hufford@wsj.com
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
December 01, 2016 08:32 ET (13:32 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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