Parker Hannifin announced that it has signed a definitive agreement to acquire Filtration Group for $9.25 billion in a transaction that will significantly expand Parker’s filtration portfolio and strengthen its global aftermarket presence. The acquisition is being completed on a cash-free and debt-free basis and is expected to be financed through new debt and available cash. The transaction remains subject to regulatory approvals and customary closing conditions, with completion expected within six to twelve months.
Filtration Group, a privately held company affiliated with Madison Industries, specializes in advanced filtration technologies for performance-critical applications and has a strong presence in high-value end markets, including life sciences, HVAC and refrigeration, as well as various industrial and in-plant environments. The company expects $2 billion in calendar year 2025 revenue, with an adjusted EBITDA margin of 23.5%, supported by a recurring revenue mix where approximately 85% of its sales are driven by aftermarket demand. Filtration Group employs around 7,500 team members across global regions.
Parker stated that the acquisition is aligned with its long-term strategy to grow its portfolio of engineered, high-performance solutions and increase exposure to resilient aftermarket revenue streams. By combining Filtration Group’s proprietary media technologies, technical expertise, and customer relationships with Parker’s operational framework known as The Win Strategy, the company expects to enhance organic growth, expand margins, and create additional value across customer markets worldwide.
The company anticipates realizing approximately $220 million in pre-tax cost synergies by the end of the third year following the transaction’s completion. Parker expects the acquisition to be accretive to organic growth, synergized EBITDA margin, adjusted earnings per share, and cash flow, ultimately targeting high single-digit cash return on invested capital by year five.
Parker will host a webcast for investors regarding the acquisition at 8:30 AM Eastern Time. A replay will be available for one year on the company’s investor relations website.
KEY QUOTES:
“This strategic transaction continues our investment in high quality businesses that continue to transform our portfolio, accelerate sales growth and improve profitability. The acquisition will create one of the largest global industrial filtration businesses. Filtration Group’s complementary capabilities and strong aftermarket presence enhances our ability to serve customers globally. Leveraging The Win Strategy as a part of our proven operations and integration playbook, we see clear opportunities to deliver strong cost synergies, compound earnings per share growth and create shareholder value.”
Jenny Parmentier, Chairman of the Board and Chief Executive Officer, Parker Hannifin
“Filtration Group is excited to become part of Parker. Together, our mission-critical offering of advanced filtration technologies will create a broader portfolio of solutions for customers in key growth markets around the world. Parker is an exceptional company, and we are confident Filtration Group will benefit from Parker’s increased scale, technical knowledge and disciplined approach to driving growth and operational excellence.”
Jon Pratt, President and Chief Executive Officer, Filtration Group
