Parker Hannifin to purchase the Commercial Intertech Corp. for 0.82 times revenue

Weekly Corporate Growth Report, Jan 24, 2000

The Deal: The Parker Hannifin Corporation, the maker of industrial motion and control devices, has announced that it is buying the Commercial Intertech Corporation, for $366 million in cash and stock, plus the assumption of $107 million Commercial Intertech's debt. Under the terms of the agreement, Parker Hannifin will pay $32.18 for each Commercial Intertech share.

Discussion: Commercial Intertech makes hydraulic gear pumps and motors, control valves and telescopic systems for OEMs. Dump trucks, cranes, garbage trucks and backhoes which use the company's hydraulic systems account for more than two-thirds of sales. The firm also makes metal stamped products, including tank ends and train wheels, that it sells to markets in the Americas and exports to the Pacific Rim. Its Astron subsidiary custom-engineers metal buildings to be used as offices, warehouses, supermarkets and aircraft hangars in Europe and the Asia/Pacific region.

Parker Hannifin is a motion-control equipment manufacturer. Equipment made by Parker Hannifin helped to sink the replicated Titanic in the Academy Award-winning film. The company makes more than 1,400 motion-control products that move and position materials or control equipment. It supplies about 400,000 customers in industrial and aerospace markets in more than 35 countries. Parker Hannifin product groups include aerospace, fluid connectors, hydraulics, automation, climate and industrial controls, seals, filtration and instrumentation. Customers include Airbus, Freightliner and John Deere.