Parker Hannifin's Strategic Move: Acquisition of Curtis Instruments
Parker Hannifin Expands Electrification with Curtis Instruments Acquisition
Parker Hannifin Corporation (NYSE:PH), a leader in motion and control technologies, is set to enhance its electrification capabilities through the acquisition of Curtis Instruments, Inc. The renowned company specializes in motor speed controllers and instrumentation, making this deal a strategic fit for Parker's expanding electric and hybrid solutions portfolio.
The Details of the Acquisition
With a price tag of approximately $1 billion in cash, this acquisition positions Parker to tap into new markets and strengthen its role in the electrification space. Curtis Instruments, which is expect to generate around $320 million in sales, brings technologies that complement Parker’s existing electric motor and motion control systems.
Aligning with Long-term Electrification Trends
Jenny Parmentier, Chairman and Chief Executive Officer of Parker, expressed enthusiasm about the acquisition, aligning it with the long-term trend towards electrification in various industries. Parmentier noted that Curtis will augment Parker’s current industrial electrification platform, allowing better service to customers embracing electric and hybrid solutions.
Importance of Strong Partnerships and Synergies
The acquisition has garnered praise from Curtis’s parent company, Rehlko, and their financial partner, Platinum Equity. They believe that Parker's scale and investment focus will enhance Curtis’s innovative capabilities. This partnership indicates a mutual commitment to fostering innovation and sustaining growth within the electrification sector.
Advisory Roles in the Transition
Parker is supported by a team of financial and legal advisors to ensure a smooth transition during this acquisition phase. Guggenheim Securities, LLC, Jones Day, and Eversheds Sutherland are key players representing Parker, while BofA Securities and Goldman Sachs take on advisory roles for Rehlko.
A Commitment to Innovation and Growth
Parker Hannifin has built a legacy of enabling engineering breakthroughs and consistently rewarding its shareholders with dividends for over six decades. Their strategic acquisition of Curtis Instruments reflects a commitment to growth and responsiveness to market demands for electrified solutions.
Conclusion
This acquisition is not just about expanding market share; it represents Parker’s vision for the future, where electrification drives industry evolution. The synergies between Parker and Curtis Instruments are poised to create enhanced offerings for clients across various industries, pushing the envelope on what’s possible within motion and control technology.
Frequently Asked Questions
What is the purpose of Parker's acquisition of Curtis Instruments?
The acquisition aims to enhance Parker's capabilities in electrification technologies and expand its portfolio for electric and hybrid solutions.
What technologies does Curtis Instruments specialize in?
Curtis Instruments specializes in motor speed controllers, instrumentation, power conversion, and related input devices.
How will this acquisition benefit Parker's customers?
The combination of the two companies’ technologies will better position Parker to serve customers adopting electric and hybrid solutions.
What is the expected sales figure for Curtis Instruments in the coming year?
Curtis Instruments anticipates sales of approximately $320 million for the upcoming fiscal year.
Who are the financial and legal advisors involved in this acquisition?
Parker is advised by Guggenheim Securities and Jones Day, while Rehlko engages BofA Securities and Goldman Sachs as their advisors.
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