Jessica Hill | The Plain Dealer
Parker Hannifin operations in New Britain, Conn.
Parker-Hannifin, which makes motion and control systems for the industrial and aerospace markets, said on Thursday it would buy air filtration systems maker Clarcor for about $4.3 billion, including debt.
Parker-Hannifin shares gained 3 percent Thursday, while Clarcor shares surged more than 17 percent.
Parker-Hannifin’s offer of $83 per share represents a premium of about 17.8 percent to Clarcor’s closing price on Wednesday.
Parker-Hannifin, whose motion and control systems are used in air conditioners, refrigerators and the transportation industry, said the deal would add a broad range of industrial air and liquid filtration products to its portfolio.
Clarcor’s strong presence in the United States and high percentage of recurring after-market sales would benefit Parker-Hannifin, the company’s Chief Executive Tom Williams said in a statement.
Franklin, Tennessee-based Clarcor had total current liabilities of $302.8 million of Aug. 27. It had annual sales of about $1.48 billion in the year ended Nov. 28, 2015.
Parker-Hannifin said it plans to finance the deal using cash and new debt.
Morgan Stanley is Parker-Hannifin’s financial adviser and Goldman Sachs is Clarcor’s adviser.
— CNBC contributed to this report.