Parker To Buy Filtration Company CLARCOR For $4.3 Bln, Incl. Debt - Quick Facts

(RTTNews) - Parker Hannifin Corp. (PH), a diversified manufacturer of motion and control technologies and systems, on Thursday said it has entered into a definitive agreement to acquire CLARCOR Inc. (CLC) for approximately $4.3 billion in cash, including the assumption of net debt.

Under the terms of the agreement, Parker will purchase shares of CLARCOR for $83.00 per share in cash. This represents a premium of approximately 17.8 percent to CLARCOR's closing share price on November 30, and a premium of approximately 29.2 percent to CLARCOR's volume weighted average share price over 90 days.

The transaction has been unanimously approved by the Board of Directors of each company. The deal would be completed by or during the first quarter of Parker's fiscal year 2018 and is subject to customary closing conditions.

The transaction is expected to be accretive to Parker's Cash Flow, EPS and EBITDA margins, after adjusting for one-time costs.

Parker said it expects to realize annual run rate cost synergies of approximately $140 million three years after closing through a variety of initiatives.

CLARCOR is a diversified marketer and manufacturer of mobile, industrial and environmental filtration products with annual sales of approximately $1.4 billion and 6,000 employees worldwide.

Upon closing of the transaction, CLARCOR will be combined with Parker's Filtration Group to form a leading and diverse global filtration business.