Mayfield Heights, Ohio—Parker Hannifin completed the $3.68 bn acquisition of Lord Corporation on 30 November.
Lord makes adhesives, coatings, and polyurethane-based vibration and motion control components. The deal was announced in April.
Parker said Lord will strengthen its portfolio 'of attractive margin and high growth businesses. It will significantly expand Parker's materials science capabilities.' The acquisition should start adding to earnings and cash flow right away.
Lord will become part of Parker's Engineered Materials Group. Parker said that a 'detailed integration plan is underway, designed to allow for a smooth transition between Parker and Lord.'
Lord, founded in 1924, makes products for the aerospace, automotive and industrial markets. Its annual sales are about $1.1 bn. The company has 3,100 employees at 17 manufacturing and 15 research and development operations worldwide.
Parker employs about 58,000 people globally. Its revenues last year topped $14.5 bn.
Parker said the deal should enable it to reduce annual costs by $125 m, through economies of scale in purchasing and distribution. Costs of running the two businesses will also fall through integration.
by Scott Suttell
This story first appeared in Crain's Cleveland Businesses.