Parker-Hannifin Corporation (
) 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.
PARKER HANNIFIN (PH): Free Stock Analysis
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