Parker-Hannifin Corp. (Cleveland, Ohio, U.S.) has completed its acquisition of aerospace and defense components manufacturer Meggitt PLC Coventry, U.K.) for approximately GBP 6.3bn.
Meggitt reportedly had annual revenue of approximately GBP 1.63bn for the 12 months ending June 30, 2022, and employs more than 9,000 team members serving customers globally.
Meggitt is said to have diverse aerospace and defense exposure with technology and products on almost every major aircraft platform. According to Parker-Hannifin, combining Meggitt’s and Parker’s product lines will enable greater support of electrification and net-zero emissions goals.
Parker reports that its core offerings now include braking systems, advanced engine sensors, safety systems, engine valve and actuation, electric power, and thermal management. To Meggitt’s portfolio, Parker adds insight and pedigree of flight controls and hydraulics, fluid systems including fuel tank inerting, fluid conveyance, lubrication, and more.
According to Parker-Hannifin, the transaction is expected to drive significant value creation for shareholders through increased organic growth, stronger cash flow, and add to Parker’s earnings per share, excluding one-time costs and deal related amortization. Meggitt will add complementary technologies, increase Parker Aerospace’s aftermarket mix through recurring revenue, and enhance growth opportunities through commercial aerospace recovery, anticipated global aircraft fleet renewal, and in emerging trends such as electrification and low-carbon technologies.
