Nov. 11 at 3:35 PM
Shares of Parker-Hannifin fell in premarket trading Tuesday after the motion and control technologies company announced it will acquire Filtration Group Corporation for
$9.25 billion in cash. The deal, expected to close within 6–12 months pending regulatory approval, will be funded through new debt and available cash.
The purchase price equals 19.6× Filtration Group’s estimated 2025 adjusted EBITDA, or 13.4× including expected cost synergies. Filtration Group, a U.S.-based private firm affiliated with Madison Industries, is projected to generate
$2 billion in 2025 sales with a 23.5% adjusted EBITDA margin, with about 85% from aftermarket operations.
CEO Jenny Parmentier said the acquisition strengthens Parker’s portfolio, accelerates sales growth, and enhances profitability. The company targets
$220 million in annual cost synergies by year three and expects the deal to boost organic growth, EBITDA margin, adjusted EPS, and cash flow.
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