Ohio company buying Clarcor for $4.3B
December 1, 2016
Nashville Post
by Geert De Lombaerde
A $12 billion manufacturing giant plans to pay $4.3 billion for Frankin-based filtration products maker Clarcor.
Cleveland, Ohio-based Parker Hannafin is paying $83 per share for Clarcor, which closed Wednesday (Ticker: CLC) at $70.45 and already is up more than 40 percent in 2016. The all-cash deal, which has been approved by the directors of both companies, is expected to close next summer and immediately add to Parker’s bottom line.
“Becoming part of Parker, with its significant systems expertise and stellar reputation for quality and innovation, should only enhance and accelerate our strategic initiatives and technology development efforts, expand our growth plans and provide new opportunities for many of our employees,” said Chris Conway, Clarcor’s chairman, president and CEO. “We are looking forward to working together with the Parker team to ensure a smooth combination of our businesses and operations and bring these goals to fruition.”
Clarcor has annual revenues of about $1.4 billion and some 6,000 employees around the world. Parker, which also does business in the aerospace, climate control, electromechanical, hydraulics, pneumatics industries among others, has facilities in 39 states and in almost 50 countries. It employs about 49,000 people.
In a note to employees, Conway said the Clarcor was not looking to sell the company but was approached by Parker, which he said has a decentralized business model similar to Clarcor’s.
“We also believe our cultures and values are an excellent match. Clarcor, like Parker, prides itself on a long and successful history that reinforces entrepreneurialism and innovation,” said Tom Williams, chairman and CEO of Parker. “Together, Parker and Clarcor will advance our commitment to engineer the success of our customers and team members and enhance shareholder value.”
The Parker team expects to produce cost savings of about $140 million in the three year following the purchase of Clarcor.