Parker-Hannifin Corp acquired LORD Corporation for approximately $3.675 billion in cash, a transaction completed in October 2019, structured as all cash.
LORD Corporation operates in Engineered Materials Group, is based in Headquartered in Cary, North Carolina, with manufacturing and R&D facilities globally, had revenue of about approximately $1.1 billion annual sales. LORD Corporation, headquartered in Cary, North Carolina, is a privately held company founded in 1924 offering a broad array of advanced adhesives, coatings and specialty materials as well as vibration and motion control technologies for mission-critical aerospace, automotive and industrial applications. LORD had annual sales of approximately $1.1 billion and 3,100 team members across 17 manufacturing and 15 R&D facilities globally.
Reinforces Parker's objective to invest in attractive-margin, high-growth businesses such as engineered materials; significantly expands materials science capabilities and positions Parker for electrification and lightweighting trends.
Attractive-margin, high-growth engineered materials business with strong brands and exposure to electrification and lightweighting. Approximately $125 million pre-tax run-rate cost synergies expected by full-year 2023 (cost to achieve ~$80 million). Combined with Parker's Engineered Materials Group
This strategic transaction will reinforce our stated objective to invest in attractive margin, growth businesses, such as engineered materials, that accelerate us towards top-quartile financial performance. LORD will significantly 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.Tom Williams, Chairman and CEO, Parker Hannifin
With complementary business segments, coming together with Parker enables LORD to carry out our grander vision. Parker is already a large tier one supplier in many areas, allowing our business lines immediate access to growth, additional markets, applications and new customers.Ed Auslander, President and CEO, LORD Corporation
Advisory firms were not disclosed for this transaction.