Parker Hannifin buying adhesives, coatings maker Lord Corp. for $3.6 billion

In a bid to strengthen its engineered materials business, U.S. industrial conglomerate Parker Hannifin Corp. is buying privately held adhesives and coatings maker Lord Corp. for about US$3.68 billion in cash.

Upon closing of the transaction – which is expected within the next four to six months – Cary, N.C.-based Lord will be combined with Parker Hannifin’s engineered materials group.

Cleveland, Ohio-based Parker Hannifin’s engineered materials business is part of its larger diversified industrial unit, which reported sales of US$11.98 billion in 2018, constituting about 84 per cent of the company’s overall revenue.

“This strategic transaction will reinforce our stated objective to invest in attractive margin, growth businesses, such as engineered materials, that accelerate us towards top-quartile financial performance,” Tom Williams, Parker Hannifin’s chairman and CEO, said in a statement. “Lord will significantly expand our materials science capabilities with complementary products, better positioning us to serve customers in growth industries and capitalize on emerging trends such as electrification and lightweighting.”

Founded in 1924, Lord has annual sales of approximately US$1.1 billion and employs 3,100 team members across 17 manufacturing and 15 research and development facilities globally. In addition to adhesives and coatings, Lord also provides vibration and motion control technologies used in the aerospace, automotive, and industrial markets.