Deal

Parker-Hannifin Corp acquires CLARCOR Inc.

February 2017 full acquisition (merger) ready

Snapshot

Parker-Hannifin Corp acquired CLARCOR Inc. for approximately $4.3 billion in cash, including assumption of net debt ($83.00 per share) in February 2017. The transaction was structured as all cash. CLARCOR Inc. is a Headquartered in Franklin, Tennessee, with operations worldwide-based Filtration Group business.

Acquirer
Parker-Hannifin Corp
Target
CLARCOR Inc.
Value
approximately $4.3 billion in cash, including assumption of net debt ($83.00 per share)
Date
February 2017
Type
full acquisition (merger)
Status
ready
01 Scorecard

The deal at a glance

Private-market deal
Parker-Hannifin Corp acquires CLARCOR Inc.
Deal value
approximately $4.3 billion in cash, including assumption of net debt ($83.00 per share)
Sector
Filtration Group
Date
February 2017
VectorShift
Made on VectorShift

About this deal

Parker-Hannifin Corp acquired CLARCOR Inc. for approximately $4.3 billion in cash, including assumption of net debt ($83.00 per share), a transaction completed in February 2017, structured as all cash.

CLARCOR Inc. operates in Filtration Group, is based in Headquartered in Franklin, Tennessee, with operations worldwide, had revenue of about approximately $1.4 billion annual sales. CLARCOR, headquartered in Franklin, TN, is a diversified marketer and manufacturer of mobile, industrial and environmental filtration products with annual sales of approximately $1.4 billion and 6,000 employees worldwide. Approximately 80 percent of CLARCOR's revenue was generated through aftermarket sales.

Consistent with Parker's stated objective to invest in businesses that accelerate it toward top-quartile financial performance; the combination is highly complementary, pairing Parker's international/OEM strength with CLARCOR's strong U.S. presence and high recurring aftermarket sales.

Strong recurring revenue (~80% aftermarket), complementary filtration products, and leading brands that broaden Parker's filtration portfolio. Approximately $140 million annual run-rate cost synergies expected three years after closing. Combined with Parker's Filtration Group to form a leading global filtration business

This strategic transaction is consistent with our stated objective to invest in businesses that accelerate Parker towards our goal of top quartile financial performance. The combination of Parker and CLARCOR is highly complementary and offers a great opportunity to combine our strength in international markets and OEMs with CLARCOR's strong U.S. presence and high percentage of recurring sales in the aftermarket.
Tom Williams, Chairman and CEO, Parker Hannifin
Joining Parker provides a terrific opportunity to accelerate our mission of making our world cleaner and safer while delivering an immediate and substantial cash premium to our shareholders and bolstering the confidence of our customers.
Chris Conway, Chairman, President and CEO, CLARCOR
Advisors not disclosed

No advisory firms have been disclosed for this transaction.

Sources Press releaseSEC filing Last updated

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