Parker Completes Acquisition of Meggitt PLC
13 September 2022 - 01:30PM
Parker-Hannifin Corporation, the global leader in motion and
control technologies, today announced it has completed its
acquisition of Meggitt PLC for approximately £6.3 billion. Meggitt,
headquartered in Coventry, the UK, had annual revenue of
approximately £1.63 billion for the 12 months ending June 30, 2022
and employs more than 9,000 team members serving customers around
the world. Meggitt has diverse aerospace and defense exposure with
technology and products on almost every major aircraft
platform.
“We are excited to have reached the closing of what is a very
compelling strategic and cultural combination,” said Tom Williams,
Chairman and Chief Executive Officer. “Meggitt’s complementary
product portfolio and geographic footprint, as well as its
proprietary and differentiated technologies, will significantly
enhance Parker’s capabilities, positioning us to provide a broader
suite of solutions for aircraft and aeroengine components and
systems. This acquisition continues the transformation of Parker’s
portfolio with greater exposure to longer cycle, more resilient
businesses that are well positioned for secular growth trends.”
The transaction is expected to drive significant value creation
for shareholders through increased organic growth, stronger cash
flow and add to Parker’s earnings per share, excluding one-time
costs and deal related amortization. Meggitt will add
complementary technologies, increase Parker Aerospace’s aftermarket
mix through recurring revenue, and enhance growth opportunities
through commercial aerospace recovery, anticipated global aircraft
fleet renewal, and in emerging trends such as electrification and
low-carbon technologies.
Roger Sherrard, President of Parker’s Aerospace Group, added,
“Parker has great respect for Meggitt, its heritage and its place
in British industry. We are committed to being a responsible
steward of the company and we plan to continue to innovate and
invest in key markets that are of importance to Meggitt. The
combination of Parker and Meggitt is exciting for both companies
and provides our customers with a broad array of solutions for the
global aerospace industry. We welcome the Meggitt team to the
Parker Aerospace Group. Our joint integration team will work
collaboratively to ensure a seamless transition for customers,
distributors and suppliers.”
NOTICE OF CONFERENCE CALL: Parker
Hannifin will host a conference call and slide presentation to
discuss its acquisition of Meggitt PLC and its impact on its fiscal
2023 financial outlook via live webcast on September 28, 2022 at
11:00 a.m. ET, at www.phstock.com. A replay of the webcast will be
available on the site approximately one hour after the completion
of the call and will remain available for one year. To register for
e-mail notification of future events please visit
www.phstock.com.
About Parker
Parker Hannifin is a Fortune 250 global leader in motion and
control technologies. For more than a century the company has been
enabling engineering breakthroughs that lead to a better tomorrow.
Parker has increased its annual dividend per share paid to
shareholders for 66 consecutive fiscal years, among the top five
longest-running dividend-increase records in the S&P 500 index.
Learn more at www.parker.com or @parkerhannifin.
About Meggitt
Headquartered in the United Kingdom, Meggitt is an international
group and a world leader in the aerospace, defence and energy
markets, employing more than 9,000 people at over 40 manufacturing
facilities and regional offices worldwide. Learn more at
www.meggitt.com or @Meggittglobal.
To learn more about this transaction visit
www.aerospacegrowth.com
Forward-Looking StatementsForward-looking
statements contained in this and other written and oral reports are
made based on known events and circumstances at the time of
release, and as such, are subject in the future to unforeseen
uncertainties and risks. Often but not always, these statements may
be identified from the use of forward-looking terminology such as
“anticipates,” “believes,” “may,” “should,” “could,” “expects,”
“targets,” “is likely,” “will,” or the negative of these terms and
similar expressions, and include all statements regarding future
performance, earnings projections, events or developments. Neither
Parker nor any of its respective associates or directors, officers
or advisers, provides any representation, assurance or guarantee
that the occurrence of the events expressed or implied in any
forward-looking statements will actually occur. Parker cautions
readers not to place undue reliance on these statements. It is
possible that the future performance and earnings projections of
the company, including its individual segments, may differ
materially from past performance or current expectations.
Among other factors which may affect future performance are: the
impact of the global outbreak of COVID-19 and governmental and
other actions taken in response; changes in business relationships
with and purchases by or from major customers, suppliers or
distributors, including delays or cancellations in shipments;
disputes regarding contract terms or significant changes in
financial condition, changes in contract cost and revenue estimates
for new development programs and changes in product mix; ability to
identify acceptable strategic acquisition targets; uncertainties
surrounding timing, successful completion or integration of
acquisitions and similar transactions, including the integration of
Meggitt PLC, LORD Corporation or Exotic Metals; the ability to
successfully divest businesses planned for divestiture and realize
the anticipated benefits of such divestitures; the determination to
undertake business realignment activities and the expected costs
thereof and, if undertaken, the ability to complete such activities
and realize the anticipated cost savings from such activities;
ability to implement successfully business and operating
initiatives, including the timing, price and execution of share
repurchases and other capital initiatives; availability, cost
increases of or other limitations on our access to raw materials,
component products and/or commodities if associated costs cannot be
recovered in product pricing; ability to manage costs related to
insurance and employee retirement and health care benefits; legal
and regulatory developments and changes; compliance costs
associated with environmental laws and regulations; potential
supply chain and labor disruptions, including as a result of labor
shortages; threats associated with international conflicts and
efforts to combat terrorism and cyber security risks; uncertainties
surrounding the ultimate resolution of outstanding legal
proceedings, including the outcome of any appeals; local and global
political and competitive market conditions, including global
reactions to U.S. trade policies, and resulting effects on sales
and pricing; and global economic factors, including manufacturing
activity, air travel trends, currency exchange rates, difficulties
entering new markets and general economic conditions such as
inflation, deflation, interest rates (including fluctuations
associated with any potential credit rating decline) and credit
availability; inability to obtain, or meet conditions imposed for,
required governmental and regulatory approvals; changes in consumer
habits and preferences; government actions, including the impact of
changes in the tax laws in the United States and foreign
jurisdictions and any judicial or regulatory interpretation
thereof; and large scale disasters, such as floods, earthquakes,
hurricanes, industrial accidents and pandemics. Readers should
consider these forward-looking statements in light of risk factors
discussed in Parker’s Annual Report on Form 10-K for the fiscal
year ended June 30, 2022 and other periodic filings made with the
SEC.
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Contact: |
Media - |
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Aidan Gormley - Director,
Global Communications and Branding |
216-896-3258 |
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aidan.gormley@parker.com |
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Financial Analysts
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Robin J. Davenport, Vice
President, Corporate Finance |
216-896-2265 |
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rjdavenport@parker.com |
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Stock
Symbol: |
PH - NYSE |
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