Aerospace motion and control-technology company Parker Hannifin (PH) - Get Reportannounced on Monday that it was acquiring aircraft exhaust systems maker Exotic Metals Forming Co. in a $1.56 billion all-cash deal. 

The transaction, which has been approved by both companies' boards, is subject to customary closing conditions, including receipt of applicable regulatory approvals.

"Exotic will significantly bolster our already strong aerospace offering with complementary products for performance-critical applications," Parker Hannifin CEO Tom Williams said in a statement. "We expect the transaction to be accretive to organic growth, EBITDA margins, EPS and cash flow, excluding one-time costs."

On closing, Parker Hannifin plans to have Exotic Metals operate as a standalone division within its aerospace group.

Parker Hannifin plans to finance the transaction using new debt. Exotic Metals has expected annual sales of approximately $450 million and employs 1,600 across three locations in the U.S.

Shares of Parker Hannifin were down 0.80% at $13.49 in early Monday trading on the New York Stock Exchange. 

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