Frequently Asked Questions
What was announced?
On February 28, 2017 Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, completed its acquisition of CLARCOR Inc., a major manufacturer of filtration products, for approximately $4.3 billion in cash, including the assumption of net debt.
The strategictransaction creates a combined organization with a comprehensive portfolio of filtration products and technologies, offering customers a single streamlined source for all their purification and separation needs.
Who is CLARCOR?
Headquartered in Franklin, Tennessee, CLARCOR is a diversified marketer and manufacturer of mobile, industrial and environmental filtration products with annual sales of approximately $1.4 billion and 6,000 employees.
CLARCOR conducts most of its business in the U.S. while maintaining operations and sales offices in every major region of the world and has a portfolio of leading and respected brands, including CLARCOR, Baldwin, Fuel Manager®, PECOFacet, Airguard, Altair, BHA®, Clearcurrent®, Clark Filter, Hastings, United Air Specialists, Keddeg and Purolator.
Why did Parker acquire CLARCOR?
With CLARCOR’s strong aftermarket presence and complementary product lines and markets, we believe it will be an ideal addition to the Parker portfolio. With this combination, we expect our Filtration Group to be among the top filtration companies in the world.
This acquisition will help Parker achieve its growth goals. CLARCOR strengthens Parker’s filtration portfolio with additional proprietary media, industrial air and process filtration products and technologies. CLARCOR, like Parker, prides itself on its entrepreneurial and innovative history and we believe that this combination will position our customers and team members for even greater success.
In addition, this transaction strengthens Parker’s systems capabilities and enhances the rest of Parker’s technologies, enabling the company to provide even better motion and control systems solutions to customers.
What changes are expected in the near term?
For most customers, it will be business as usual in the near term. We are committed to a smooth integration of our businesses and customers should anticipate the same quality and service they’ve come to expect. Any changes that result as we continue through the integration journey will be communicated with transparency and timeliness.
What’s the timeline for the integration?
We are working closely with CLARCOR team members to begin integrating the business. As you might imagine, there are many elements that need to be reviewed and considered to help ensure we combine our two business in a way that best supports the business and our customers. We are committed to keeping key stakeholders updated along the way.
What does this mean for customers?
For our customers, they will continue to receive the top-quality and timely support they’ve come to expect from their trusted partners – with streamlined access to a wider supply of solutions to solve their end-to-end needs.
How do customers benefit from this combination?
Through this combination, customers gain expanded value by:
Complementary technologies and product lines in largely common end markets, i.e., gas turbines air inlet infiltration, low pressure industrial air filtration, natural gas coalescing and a broad range of aftermarket filter solutions.
A single streamlined source to fulfill all your global filtration needs and services, and this will help ensure your total system’s efficiency and health.
You also gain a direct link to Parker’s entire motion and control technology platform, creating new opportunities to enhance your productivity and profitability.
With the combination of engineering and design talent, we expect to generate breakthrough products and to advance filtration technologies for you.
What does this mean for suppliers?
We deeply value our strategic partners, and will continue to honor the agreements established with them. We will continue to mitigate any business disruptions as we proceed through this integration.
What can distributors expect as a result of this integration?
As we proceed with the integration, the priority will be to understand how we can best leverage our distribution network to meet customer needs most effectively. We are committed to maintaining the value of the Parker distributor relationship and are committed to open communication as we move though the integration process.
Will Parker change the CLARCOR name, brands or product lines?
CLARCOR businesses are now a part of Parker Hannifin Corporation. For the immediate term, customer-facing brand names will remain the same. Any changes to naming will be communicated with timeliness and transparency.
Who is leading the business?
Parker’s filtration business will be led by Rob Malone, the President of Parker’s Filtration Group.
What are the financial details of this acquisition?
Under the definitive agreement signed on December 1, 2016, Parker has purchased all outstanding CLARCOR shares for $83 per share in cash for a total consideration of approximately $4.3 billion.
The transaction is expected to be accretive to Parker’s cash flow, earnings per share and earnings before tax, interest, depreciation and amortization, after adjusting for one-time costs.