Parker Hannifin plans to acquire the aerospace and defense business of pump and valve supplier Circor International in a deal valued at more than $2.5 billion, company officials announced Thursday.
The transaction would see Parker add Circor’s lineup of motion and flow control products for commercial aircraft and defense applications, which the motion and control systems provider said represented just its latest investment in “longer cycle, higher growth, high margin businesses.”
Circor projected aerospace sales of about $270 million this year and “double-digit sales growth over the next several years,” Parker officials said.
“Circor Aerospace adds complementary capabilities and technologies, further expanding our ability to serve aerospace and defense customers,” Parker Chairman and CEO Jenny Parmentier said in a statement.
Circor, meanwhile, would be pared down to its industrial and naval segments. Circor and KKR, its private equity owner, said that the company remains dedicated to strengthening both divisions through “organic growth and strategic acquisitions.”
“We are pleased with the strong foundation the [aerospace] team has established and look forward to watching the business continue to grow as part of Parker Hannifin,” said Circor CEO Saif Siddiqui.
The cash purchase price of $2.55 billion includes expected tax benefits with an estimated net value of $75 million. The deal is expected to close in the second half of the year, subject to regulatory approval and other closing conditions.
Circor, which established an employee-ownership program in 2024, said that its employees are slated to receive a dividend distribution funded by a portion of the sale proceeds.
