The boards of directors of Parker-Hannifin Corporation (Parker) and Meggitt PLC (Meggitt) announced that they have reached agreement on the terms of a recommended cash acquisition of Meggitt by Parker.
Parker says they believe Meggitt is very well aligned with their goals and Parker’s global business system, representing a unified strategic vision for its team members worldwide. Parker says the acquisition would be “strategically and culturally compelling, and enhance the future prospects of the Combined Group within global aerospace and defense industries.”
Parker highlights these key reasons for the acquisition: Meggitt is an international group headquartered in the UK; Meggitt, like Parker, has a rich heritage in the aerospace and defence segments; Meggitt has a global brand, a complementary business mix, an impressive international base of blue-chip customers.
Parker says Meggitt has been transforming its business over the last four years through its focused strategy, streamlining its portfolio, investing in new technologies, and growing through its customer-aligned divisions. The two companies says they are complementary across diverse portfolios of products. The acquisition of Meggitt will nearly double the size of Parker’s Aerospace Systems segment.
Parker also believes the combined group will be able to provide a stronger value proposition and the two together are positioned for “strong growth, supported by the commercial aerospace recovery, and will be able to maximize its potential by building on a combined product portfolio and geographic footprint and by sharing operational and functional best practices.”
Commenting on the announcement, Tom Williams, chairman and chief executive officer of Parker said, “The combination of Parker and Meggitt is an exciting opportunity for both companies’ team members, customers, shareholders and communities. We strongly believe Parker is the right home for Meggitt. Together, we can better serve our customers through innovation, accelerated R&D and a complementary portfolio of aerospace and defense technologies.”“We are committed to being a responsible steward of Meggitt and are pleased our acquisition has the full support of Meggitt’s Board. We fully understand these responsibilities and are making a number of strong commitments that reflect them. During our longstanding presence in the UK we have built great respect for Meggitt, its heritage, and its place in British industry. Our own journey over more than 100 years has taught us the importance of a strong culture and reputation.”