Parker Hannifin To Acquire Filtration Group In $9.25 Bln All-cash Deal

Parker Hannifin

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(RTTNews) - Parker Hannifin Corp. (PH), a leader in motion and control technologies, announced Tuesday that it has entered into a definitive agreement to acquire Filtration Group Corp. on a cash-free, debt-free basis for a cash purchase price of $9.25 billion.

Filtration Group is a U.S. based private company and affiliate of Madison Industries. It expects calendar year 2025 sales of $2 billion with adjusted EBITDA margin of 23.5% and employs approximately 7,500 team members serving customers around the world.

The transaction will add complementary and proprietary filtration technologies for critical applications and will create one of the largest global industrial filtration businesses. It also expands presence in Life Sciences, HVAC/R, and In-Plant and Industrial market vertical.

The purchase price is expected to be financed with new debt and cash on hand. The transaction is subject to customary closing conditions, including receipt of applicable regulatory approvals, and is expected to close within six to twelve months.

"This strategic transaction continues our investment in high quality businesses that continue to transform our portfolio, accelerate sales growth and improve profitability," said Jenny Parmentier, Chairman of the Board and CEO.

By leveraging its business system, The Win Strategy, Parker estimates pre-tax cost synergies of approximately $220 million by the end of year three following completion of the transaction.

The transaction is expected to be accretive to Parker's organic growth, synergized EBITDA margin, adjusted EPS, and cash flow, and to achieve a high single-digit cash ROIC by year five.