Parker Hannifin Corp. has completed its acquisition of Lord Corp., a manufacturer of advanced adhesives and coatings, as well as vibration and motion control technologies for approximately $3.675 billion in cash. The transaction reportedly creates a combined organization with strong materials science capabilities, electrification and aerospace product offerings that are complementary.
Lord is expected to strengthen Parker’s portfolio of margin and high growth businesses, and significantly expand Parker’s materials science capabilities with complementary products, better positioning Parker to serve customers in growth industries and capitalize on emerging trends such as electrification and lightweighting.
“We are excited about the opportunity to strengthen our technology portfolio by significantly bolstering our position in engineered materials,” said Tom Williams, chairman and chief executive officer of Parker. “Acquiring Lord is expected to improve operating margins and its organic growth rate will help improve the resiliency of the Parker portfolio, strengthening our ability to achieve top quartile financial performance.”
An integration team has been formed and a detailed integration plan is underway, designed to allow for a smooth transition between Parker and Lord and to realize synergies between the two organizations.
“The Lord acquisition will allow us to deliver greater value to our existing and future customers,” said Andy Weeks, Parker’s Engineered Materials Group President. “We welcome the talented Lord team who have built a high performing business with strong product brands such as Chemlok. Going forward, we will work collaboratively to integrate our businesses by leveraging the best ideas, capabilities and practices of both organizations.”