Parker Hannifin (PH) - Get Report  agreed to acquire filtration company Clarcor (CLC) for $4.3 billion, a move that would expand Parker Hannifin's product line and boost recurring revenue.

Cleveland-based Parker Hannifin said it would buy all the outstanding shares of Clarcor for $83 a share in cash, a 17.8% premium to Clarcor's closing stock price on Wednesday.

"The combination of Parker and Clarcor is highly complementary and offers a great opportunity to combine our strength in international markets and OEMs with Clarcor's strong U.S. presence and high percentage of recurring sales in the aftermarket," said Parker Hannifin CEO Tom Williams.

Franklin, Tenn.-based Clarcor makes mobile, industrial, and environmental filtration products. It has annual sales of about $1.4 billion and 6,000 employees worldwide.

Clarcor's industrial air and liquid filtration products and technologies would help expand Parker Hannifin's offerings. It would also boost Parker Hannifin's recurring revenue as 80% of Clarcor's sales are aftermarket. 

Parker Hannifin closed at $138.93 on Wednesday, up 1.5%. Clarcor shares rose 15% in premarket trading to $81 a share.