Parker-Hannifin Corp., whose global headquarters are located in Ohio, recently announced it would buy Clarcor Inc. for about USD $4.3 billion, including debt, to double the size of its filtration systems business. The deal, Parker-Hannifin’s biggest ever, will also expand the company’s after-market business.
Parker-Hannifin makes seals, fluid power systems, electromechanical controls and other products used in industrial, hydraulic and aerospace applications. Its filtration products remove contaminants from fuel, air, oil, water and other liquids and gases.
The company will assume Clarcor’s long-term debt of just over USD $300 million. It said it plans to finance the deal with USD $1.5 billion in cash and USD $3 billion in debt, of which it plans to pay off about USD $1.3 billion within three years.