OSAKA, Japan (March 5)—Parker Hannifin Corp. signed a letter with Osaka-based Taiyo Ltd. forming a global strategic alliance, with a 40-percent equity investment by Parker in Taiyo. The transaction will be completed in March, and is expected to be accretive to Parker earnings during the first year. Taiyo posted sales of about $165 million for its fiscal year ended March 20. The company develops and manufactures a range of automation products, including hydraulic and pneumatic actuators, cylinders and specialized pneumatic products. The alliance presents growth opportunities for both companies in automation markets, including shared technology development; expanded global marketing and distribution; and leveraged operating capabilities to serve the industrial markets in Japan, Southeast Asia, Europe and the Americas, the companies said.