Parker‑Hannifin has agreed to purchase Filtration Group Corporation, a U.S.‑based private company and affiliate of Madison Industries, for $9.25 billion on a cash‑free, debt‑free basis. The deal will be financed with a mix of new debt and the company’s existing cash reserves and is expected to close within six to twelve months, pending customary regulatory approvals and other closing conditions.
The acquisition expands Parker‑Hannifin’s filtration portfolio and strengthens its aftermarket position, a core focus of the company’s Win Strategy. By adding a high‑margin, high‑growth filtration business that generates 85 % of its revenue from aftermarket customers, the transaction is positioned to create one of the largest global industrial filtration businesses and to double the size of Parker‑Hannifin’s filtration, engineered materials, and aerospace segments. The deal also enhances customer integration and is intended to drive long‑term value creation for the company’s stakeholders.
Filtration Group, which employs roughly 7,500 people, is projected to generate $2 billion in annual sales in 2025 with an adjusted EBITDA margin of 23.5 %. The company’s revenue mix is heavily weighted toward recurring aftermarket contracts, providing a stable cash‑flow foundation that complements Parker‑Hannifin’s existing product lines in life sciences, HVAC/R, and industrial markets.
The purchase price represents 19.6 times Filtration Group’s estimated 2025 adjusted EBITDA, or 13.4 times when projected cost synergies are included. Parker‑Hannifin expects pre‑tax cost synergies of about $220 million by the end of year three post‑closing, which should lift the combined entity’s adjusted EBITDA margin. The transaction is supported by a Fitch A‑ rating affirmation, with the company’s leverage projected to improve to below 2.5× by FY28 as new debt is paid down and synergies are realized.
The deal will require approval from U.S. antitrust regulators and foreign competition authorities in key markets. It is Parker‑Hannifin’s second‑largest acquisition after the $9.8 billion purchase of Meggitt in 2022, underscoring the company’s continued focus on strategic consolidation within the industrial filtration sector.
Jenny Parmentier, Parker‑Hannifin’s Chairman and CEO, said the transaction “continues our investment in high‑quality businesses that transform our portfolio, accelerate sales growth, and improve profitability.” Jon Pratt, Filtration Group’s President and CEO, expressed enthusiasm, noting that the merger will enhance both firms’ ability to deliver advanced filtration solutions across key industries.
Analysts have expressed mixed views on the timing and realization of the projected synergies, but the strategic fit of the acquisition is widely recognized as a significant step toward strengthening Parker‑Hannifin’s market position and expanding its recurring revenue base.
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