) automotive air conditioning business is now with ContiTech AG of
Hanover, Germany. The air conditioning business segregated from
Parker's Mobile Climate Systems Division to join ContiTech.
However, the terms of the deal are still undisclosed.
Parker generates approximately $140 million revenue from the
sale of hose and tube assemblies, accumulators, receiver dryers and
oil coolant assemblies for the passenger car and light truck
markets. All these products are manufactured by Parker's automotive
air conditioning business which employs about 1,000 employees.
However, Parker's air conditioning application division's products
or hose products in the heavy truck, agricultural, and construction
equipment end markets are excluded from this deal.
ContiTech AG is a renowned supplier of technical elastomer
products in the non-tire rubber sector and a specialist in rubber
technology in the non-tire rubber sector. Functional parts,
components and systems for the automotive industry and other
important industries are produced by ContiTech. With this divesture
Parker will be able to better focus on its existing business and
Parker-Hannifin Corporation is a leading worldwide full-line
diversified manufacturer of motion and control technologies and
systems, including fluid power systems, electromechanical controls
and related components. In addition to motion and control products,
the company is also a leading worldwide producer of fluid
purification, fluid and fuel control, process instrumentation, air
conditioning, refrigeration, electromagnetic shielding and thermal
management products and systems.
We continue to maintain a Neutral rating on Parker-Hannifin for
the long term. The company has a Zacks #3 Rank (Hold
recommendation) over the next one-to-three months.
PARKER HANNIFIN (PH): Free Stock Analysis
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