Parker to Acquire Velcon - Analyst Blog

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Parker-Hannifin Corporation ( PH ) is planning to expand its Filtration Group through the acquisition of Velcon Filters, LLC, from The Sterling Group LP, a private equity firm. The acquisition of the maker of filtration equipment and replacement cartridges is subject to regulatory approval. Further, the terms of the deal were not disclosed.

Velcon's products are primarily used in the aviation, industrial fuel, and industrial process filtration markets. It operates globally with approximately 300 employees. Further, Velcon's revenue for year-end August 31, 2012, amounted to $115 million, of which 33% was from the Industrial North American segment and 67% from the Industrial International segment.

Velcon's aviation product offerings, sold under the brand names of Velcon and Warner Lewis, are renowned worldwide. The addition ofVelcon Filters'brands to Parker's portfolio will enable Parker to attain a leadership position in the aviation and industrial fuel filtration markets. Further, the addition of the Twin Filter brand will strengthen its position in the process filtration markets such as oil and gas. These additions expand Parker's customer base and also it's operating regions and markets.

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.


 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



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