Parker-Hannifin to acquire Filtration Group Corporation for $9.25B

Parker Hannifin has entered into a definitive agreement to acquire Filtration Group Corporation on a cash-free, debt-free basis for a cash purchase price of $9.25B which represents 19.6x Filtration Group’s calendar year 2025 estimated adjusted EBITDA, or 13.4x including expected cost synergies. The purchase price is expected to be financed with new debt and cash on hand. The transaction is subject to customary closing conditions, including receipt of applicable regulatory approvals, and is expected to close within six to twelve months. Filtration Group, a U.S. based private company and affiliate of Madison Industries, adds complementary filtration technologies serving key growth markets with strong product brands that are often validated and specified. The company’s highly engineered products use proprietary media and leverage strong technical and application knowledge and processes. Approximately 85% of sales are generated in the aftermarket, creating strong recurring revenue streams across multiple product platforms. Filtration Group has a strong organic growth profile and serves high value, performance-critical applications. Filtration Group expects calendar year 2025 sales of $2B with adjusted EBITDA margin of 23.5% and employs approximately 7,500 team members serving customers around the world. By leveraging its business system, The Win Strategy, Parker estimates pre-tax cost synergies of approximately $220M by the end of year three following completion of the transaction. The transaction is expected to be accretive to Parker’s organic growth, synergized EBITDA margin, adjusted EPS, and cash flow, and to achieve a high single-digit cash ROIC by year five.