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Adds complementary and proprietary filtration technologies for critical applications
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Expands presence in Life Sciences, HVAC/R, and In-Plant and Industrial market verticals
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$2 billion in expected CY2025 sales, creating one of the largest global industrial filtration businesses
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85% aftermarket sales increases Parker Filtration aftermarket sales by 500 bps
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$220M cost synergies leveraging the power of The Win Strategy™
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Expected to be accretive to organic growth, synergized EBITDA margin, adjusted EPS and cash flow
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Parker to host conference call and webcast today at 8:30 AM Eastern Time
Parker Hannifin Corporation, the global leader in motion and control technologies, announced that it has entered into a definitive agreement to acquire Filtration Group Corporation on a cash-free, debt-free basis for a cash purchase price of $9.25 billion, which represents 19.6x Filtration Group’s calendar year 2025 estimated adjusted EBITDA, or 13.4x including expected cost synergies. 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.
Filtration Group, a U.S. based private company and affiliate of Madison Industries, adds complementary filtration technologies serving key growth markets with strong product brands that are often validated and specified. The company’s highly engineered products use proprietary media and leverage strong technical and application knowledge and processes. Approximately 85% of sales are generated in the aftermarket, creating strong recurring revenue streams across multiple product platforms. Filtration Group has a strong organic growth profile and serves high value, performance-critical applications. Filtration Group 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.
“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, Parker’s Chairman of the Board and Chief Executive Officer. “The acquisition will create one of the largest global industrial filtration businesses. Filtration Group’s complementary capabilities and strong aftermarket presence enhances our ability to serve customers globally. Leveraging The Win Strategy™ as a part of our proven operations and integration playbook, we see clear opportunities to deliver strong cost synergies, compound earnings per share growth and create shareholder value.”
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“Filtration Group is excited to become part of Parker,” said Jon Pratt, President and Chief Executive Officer of Filtration Group. “Together, our mission-critical offering of advanced filtration technologies will create a broader portfolio of solutions for customers in key growth markets around the world. Parker is an exceptional company, and we are confident Filtration Group will benefit from Parker’s increased scale, technical knowledge and disciplined approach to driving growth and operational excellence.”
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.
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