Parker-Hannifin completes $7.4 billion acquisition of Meggitt

MAYFIELD HEIGHTS, Ohio—It took more than a year, but Parker-Hannifin Corp. has completed its acquisition of United Kingdom-based aerospace and defense company Meggitt P.L.C.

Mayfield Heights-based Parker, a maker of motion and control technologies, closed the $7.4 billion acquisition of Meggitt Sept. 13.

The boards of Parker and Meggitt in August 2021 approved the all-cash acquisition by Parker. Regulatory approval was time-consuming and complex.

In May of this year, Parker reached an agreement to sell its Avon-based Aircraft Wheel and Brake Division in a move required to resolve concerns about overlapping activities with Meggitt and to close the acquisition. The buyer, Kaman Corp. of Bloomfield, Connecticut, a manufacturer of components and materials for aerospace and defense, industrial and medical markets. is paying $440 million for the division.

The Parker-Kaman deal closed Sept. 19.

Meggitt, headquartered in Coventry, England, had revenue of about  $1.91 billion for the 12-month period ending June 30, 2022. It has 9,000 employees globally. Parker, in a news release, noted that Meggitt "has diverse aerospace and defense exposure with technology and products on almost every major aircraft platform."

"We are excited to have reached the closing of what is a very compelling strategic and cultural combination," Tom Williams, Parker chairman and CEO, said in a statement. "Meggitt's complementary product portfolio and geographic footprint, as well as its proprietary and differentiated technologies, will significantly enhance Parker's capabilities, positioning us to provide a broader suite of solutions for aircraft and aeroengine components and systems."

The transaction "is expected to drive significant value creation for shareholders through increased organic growth, stronger cash flow and add to Parker's earnings per share, excluding one-time costs and deal related amortization," Parker said.

The company said Meggitt "will add complementary technologies, increase Parker Aerospace's aftermarket mix through recurring revenue, and enhance growth opportunities through commercial aerospace recovery, anticipated global aircraft fleet renewal, and in emerging trends such as electrification and low-carbon technologies."

Meggitt will become part of the Parker Aerospace Group.