Parker Hannifin buying Clarcor for about $4.03 billion
Parker Hannifin is buying Clarcor, a maker of mobile, industrial and environmental filtration products, in a deal valued at about $4.03 billion so it can expand its filtration portfolio.
Parker Hannifin Corp. will pay $83 for each Clarcor share. That's an approximately 18 percent premium to the Franklin, Tennessee-based company's Wednesday closing price of $70.45.
The companies put the transaction's value at approximately $4.3 billion, including debt.
Clarcor's stock jumped almost 17 percent in afternoon trading Thursday.
Clarcor's annual sales are about $1.4 billion. The company, whose brands include Baldwin, Airguard, Altair and its namesake, will be combined with Parker's filtration group once the deal closes.
The transaction is expected to close by or during Parker's fiscal 2018 first quarter. It still needs approval from Clarcor shareholders.
Clarcor Corp.'s stock jumped $11.81, or 16.8 percent, to $82.26 in afternoon trading Thursday. Parker Hannifin shares also rose, adding $4.52, or 3.3 percent, to $143.45.