Parker Goes Shopping in U.K.

The company will acquire Domnick Hunter for around $382 million.

Author:: TSC Staff
Publish date:: Aug 2, 2005 12:13 PM EDT

Parker Hannifin

agreed to buy the U.K.'s Domnick Hunter, a maker of filtration, separation and purification products, in a transaction valued at about 216 million pounds, or around $382 million at the current exchange rate.

Domnick shareholders will receive 605 pence for each of their shares. The payment represents a premium of about 51% to the average price the stock fetched over the 30 days ended July 25, the last trading day before Domnick said it was in talks with a potential bidder.

Cleveland-based Parker said Domnick employs more than 1,900 workers who will become part of its filtration group. The company had 2004 revenue of about $280 million. Parker said the acquisition should add to earnings after integration costs and savings within the first full year of the transaction.

With annual sales of more than $8 billion, Parker makes motion and control technologies and systems for a variety of commercial, mobile, industrial and aerospace markets.

Shares of Parker were gaining 84 cents to $66.84.