Parker Hannifin Reached Tentative Agreement to Resolve Antitrust Case Over Clarcor Deal -- Update
Parker Hannifin Corp. (PH) has agreed to sell the aviation fuel filtration business at the center of a monopoly challenge of its $4.3 billion deal with Clarcor, according to a tentative agreement with the Justice Department.
The proposed settlement agreement, which calls for the sale of Facet filtration business, is subject to court approval in Delaware federal court.
The department filed a complaint in September, arguing that the deal, which was completed in February, had effectively created a monopoly in the U.S. as the companies had been the only domestic manufacturers of industry-qualified aviation fuel filtration systems and filter elements.
Aircraft fuel must be filtered to remove particles that could cause engine failure.
Shares, which set a record during regular trading on Monday, gained 0.9% to $199.99 in after-hours trading.
Write to Maria Armental at maria.armental@wsj.com
Parker Hannifin Corp. (PH) has agreed to sell the aviation fuel filtration business at the center of a monopoly challenge of its $4.3 billion deal with Clarcor, according to a tentative agreement with the Justice Department.
The proposed settlement agreement, filed Monday in Delaware federal court and subject to court approval, calls for the sale of the Facet filtration business, which includes the aviation ground fuel filtration business in addition to other products. The business, Parker Hannifin said Monday, accounted for about $60 million of Clarcor's roughly $1.5 billion annual sales.
Cleveland-based Parker Hannifin would keep the rest of the Clarcor business and the aviation ground fuel filtration business Parker Hannifin owned before the merger and marketed under the Parker Velcon brand.
The department filed a complaint in September, arguing that the deal, which was completed in February, had effectively created a monopoly in the U.S. as the companies had been the only domestic manufacturers of industry-qualified aviation fuel filtration systems and filter elements.
Aircraft fuel must be filtered to remove particles that could cause engine failure.
Shares, which set a record during regular trading on Monday, gained 0.9% to $199.99 in after-hours trading.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
December 18, 2017 19:41 ET (00:41 GMT)