Parker Buys Lord

Parker buys Lord. 
   
Parker Hannifin buys Lord Corp for $3.68 billion. 
   
Lord will open out Parker's engineered materials business, adding unique and proprietary products, solutions, and ability. Lord brings a broad array of adhesives, coatings, and specialty materials, along with vibration and motion control tech for aerospace, defense, automotive, and industrial markets.
   
Expected synergies are essential values, supply chain, productivity, cross-selling opportunities, and global market distribution.
Tom Williams of Parker said: ‘This strategic transaction will reinforce our stated goal to invest in the attractive margin, growth businesses, such as engineered materials, that speed up top-quartile financial performance. Lord will expand our materials science capabilities with complementary products, better positioning us to serve customers in growth industries and capitalize on emerging trends such as electrification and lightweighting. This transaction will meaningfully transform our portfolio. We expect a smooth closing of the transaction and integration of our two businesses. We believe we can capture significant operational synergies. The combination of Parker and Lord is expected to drive significant value for Parker shareholders and be accretive to organic growth, EBITDA margins, cash flow, and EPS, excluding one-time costs and deal related amortization.’
Ed Auslander of Lord said: ‘With complementary business segments, coming together with Parker enables Lord to carry out our grander vision. Parker is already a big tier-one supplier, allowing our business lines immediate access to growth, more markets, applications, and new customers. Also, the two companies are much aligned when it comes to core values, great business acumen, and cultural fit.’
Tom Williams of Parker added: ‘We look forward to joining our teams and cultures, each of which places significant focus on safety, engaged people participating in high-performance teams, customer experience, profitable growth, and top quartile performance. Our shared values, built over the long histories of both companies, make our two companies an ideal match.’
    
Barclays serves as a financial adviser, and Cravath, Swaine & Moore serves as legal counsel to Parker Hannifin.
    
Morgan Stanley serves as a financial adviser, and Jones Day serves as legal counsel to Lord Corp.

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