Parker Hannifin Corp. is acquiring LORD Corp. for approximately $3.675 billion in cash. The move adds approximately $1.1 billion in annual sales to Parker’s engineered materials business while strengthening the motion and control technologies company’s materials science capabilities, electrification and aerospace product offerings.
“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,” Parker CEO Tom Williams said in a statement. “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."
Privately held LORD, based in Cary, N.C., offers an array of advanced adhesives, coatings and specialty materials, as well as vibration and motion control technologies to the aerospace, automotive and industrial markets. LORD employs 3,100 people across 17 manufacturing and 15 research and development facilities globally. It will be combined with Parker’s Engineered Materials Group.
The transaction is expected to be completed within the next four to six months and is subject to customary closing conditions.
Barclays is serving as financial adviser and Cravath, Swaine & Moore LLP is serving as legal counsel to Parker.
Jones Day is serving as legal counsel to LORD.
