Acquisition in the field of highly engineered materials

Parker Hannifin Corporation completed its acquisition of LORD Corporation – a manufacturer of advanced adhesives and coatings, as well as vibration and motion control technologies – for approximately $3.675 billion in cash. The strategic transaction creates a combined organization with strong materials science capabilities, electrification and aerospace product offerings that are highly complementary.

The transaction is expected to drive significant value for shareholders through increased organic growth, higher EBITDA margins, stronger cash flow and add to Parker’s earnings per share, excluding one-time costs and deal related amortization. LORD will strengthen Parker’s portfolio of attractive margin and high growth businesses, and significantly expand Parker’s materials science capabilities with complementary products, better positioning Parker to serve customers in growth industries and capitalize on emerging trends such as electrification and lightweighting.

An integration team has been formed and a detailed integration plan is underway, designed to allow for a smooth transition between Parker and LORD and to realize synergies between the two organizations.