Parker-Hannifin Corporation, a global leader in motion and control technologies, announced it has completed its acquisition of Meggitt PLC for approximately £6.3 billion. Meggitt, headquartered in Coventry, the UK, had annual revenue of approximately £1.63 billion for the 12 months ending June 30, 2022, and employs more than 9,000 team members serving customers around the world. Meggitt has diverse aerospace and defense exposure with technology and products on almost every major aircraft platform.
“We are excited to have reached the closing of what is a very compelling strategic and cultural combination,” said Tom Williams, chairman and chief executive officer. “Meggitt’s complementary product portfolio and geographic footprint, as well as its proprietary and differentiated technologies, will significantly enhance Parker’s capabilities, positioning us to provide a broader suite of solutions for aircraft and aeroengine components and systems. This acquisition continues the transformation of Parker’s portfolio with greater exposure to longer cycle, more resilient businesses that are well positioned for secular growth trends.”
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.
Roger Sherrard, president of Parker’s Aerospace Group, added, “Parker has great respect for Meggitt, its heritage and its place in British industry. We are committed to being a responsible steward of the company and we plan to continue to innovate and invest in key markets that are of importance to Meggitt. The combination of Parker and Meggitt is exciting for both companies and provides our customers with a broad array of solutions for the global aerospace industry. We welcome the Meggitt team to the Parker Aerospace Group. Our joint integration team will work collaboratively to ensure a seamless transition for customers, distributors and suppliers.”
NOTICE OF CONFERENCE CALL: Parker Hannifin will host a conference call and slide presentation to discuss its acquisition of Meggitt PLC and its impact on its fiscal 2023 financial outlook via live webcast on Sept. 28, 2022, at 11 a.m. ET, at www.phstock.com. A replay of the webcast will be available on the site approximately one hour after the completion of the call and will remain available for one year.
