Mayfield Heights, Ohio —Parker Hannifin has agreed to buy Lord Corporation for about $3.68bn in cash.
The transaction has been approved by each company's board. However, it is subject to customary closing conditions, including regulatory approval.
Parker Hannifin's engineered materials group will become home to Lord when the deal completes. Both companies use polyurethane extensively in their product ranges.
Lord will also strengthen Parker's portfolio with complementary products in markets such as aerospace, defence, automotive and industrial. Parker said Lord's products provide opportunities in emerging electrification and lightweighting trends.
'This strategic transaction will reinforce our objective to invest in, growth businesses,' Tom Williams, Parker chairman and CEO, said in a statement. His company's goal is to achieve 'top-quartile financial performance,' he added
Founded in 1924, Lord is privately held, and based in North Carolina. It makes a variety of adhesives, coatings, specialty materials, vibration and motion control technologies.
In 2018 it had sales of about $1.1 bn. It employs about 3,100 people at 17 manufacturing and 15 research and development facilities globally.
In addition, Lord has expanded its operations in the last year to capitalize on automotive E-mobility trends.
In May 2018, the firm disclosed plans to invest $80m to expand and upgrade operations at its 250,000 sqft (2.3 ha). plant in Saegertown. During the next five years, Lord will add 75,000 square feet to the building. This sits on a 67-acre 27 ha plot and employs 235.
Recently, the firm began construction on an expansion in Hueckelhoven, Germany. This is a $15.8m investment to build a 35,000-sq.-ft. addition adjacent to the current 70,000-sq.-ft. facility. when it starts operation in 2020 it will create over 20 new jobs.
'Coming together with Parker enables Lord to carry out our grander vision,' said Ed Auslander, CEO of Lord.
By Chris Sweeny.
This story first appeared in Rubber & Plastics News.
