Parker Hannifin Corporation
) completed the tender offer to purchase the outstanding shares in
its Japanese subsidiary, TAIYO, LTD. Since June 2006, Parker is
holding 56.49% shares in TAIYO, which is based in Osaka, Japan. The
tender offer made by Parker Hannifin Japan Holdings GK increases
the company's holding in TAIYO to 97.82%.
The purchase price per share has been fixed at 250 yen
(approximately $3.08). Parker paid a total consideration of 5.5
billion yen (approximately $70 million) for the tendered
Annual revenue generation of TAIYO is about 17.3 billion yen
(approximately $215 million). Parker's Global Hydraulics Group
continues to include TAIYO, manufacturer of a wide range of motion
and control products. Parker's financial statement includes 100% of
With the completion of the transaction, Parker will strengthen
its position as a provider of class hydraulic and automation
systems in Japan. The company will also develop its position in
other markets in the region.
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 #4 Rank (Sell
recommendation) over the next one-to-three months.
PARKER HANNIFIN (
): Free Stock Analysis Report
To read this article on Zacks.com click here.