Donaldson Company announced it has entered into a definitive agreement to acquire Filtration Group’s Facet Filtration business in an all-cash transaction valued at approximately $820 million, adding fuel and fluid filtration products used in mission-critical applications such as aerospace and defense and power generation.
The company said the deal complements and expands Donaldson’s portfolio with products designed for fuel and fluid filtration in critical applications, including jet fuel filtration, where it described Facet as a global pioneer. Donaldson also said the acquisition broadens its exposure to durable end markets with significant filtration needs and brings a large installed base that strengthens its aftermarket position.
Donaldson said approximately 70% of Facet sales come from consumables with regulated replacement cycles, and it expects the transaction to strengthen its financial profile with immediate margin accretion and EPS accretion in fiscal year 2027. Donaldson said Facet adds nearly $110 million in sales, with strong organic revenue growth, gross margins and EBITDA margins substantially above Donaldson’s company average, low capital intensity, and strong cash flow generation.
Donaldson said the purchase price represents approximately 20.0x calendar year 2025 EBITDA, or 16.6x when adjusted for the present value of expected tax benefits and cost synergies. The company said it intends to fund the transaction through a combination of cash on hand and new debt financing, and that the deal is subject to customary closing conditions, including applicable regulatory approvals.
Facet, which Donaldson said is headquartered in Tulsa, Oklahoma, provides fuel and fluid filtration solutions for mission-critical applications and has 236 employees across the U.S. and Europe, with key manufacturing locations in Oklahoma and Spain. Donaldson said Facet’s calendar 2025 sales were $108 million, primarily generated in North America and Europe.
KEY QUOTES
“Facet is a valuable, strategic addition to our Industrial Solutions business, increasing our exposure to attractive, durable end markets which require high-performance filtration solutions. This acquisition strengthens and diversifies our core product portfolio with new capabilities in fuel and fluid filtration including jet fuel filtration where Facet is a global pioneer. Importantly, approximately 70% of revenues are driven by recurring, regulated replacement part sales with high margins.”
“This highly complementary business expands our addressable market and enhances our long-term profitable growth. We look forward to welcoming the Facet team as we work together to deliver enhanced value to both our customers and our shareholders.”
Tod Carpenter, Chairman, President and Chief Executive Officer, Donaldson Company
