Parker-Hannifin To Acquire Meggitt For ~£6.3B

  • Parker-Hannifin Corp PH has agreed on the terms of a recommended cash acquisition of Meggitt PLC MEGGF, a global leader in aerospace and defense motion and control technologies.
  • The transaction consideration to be 800 pence in cash per Meggitt share, valuing Meggitt at ~£6.3 billion on a fully diluted basis, which is ~70.5% premium to Meggitt's share price on July 30.
  • This transaction is expected to be EPS accretive in the first full 12 months after closing, along with incremental solid sales growth, margins and cash flow accretion, high single-digit ROIC in year 5 with continued expansion, and a significant synergy opportunity of ~$300 million by the third full year.
  • Meggitt's FY20 annual revenue was ~$2.3 billion and has more than 9,000 employs. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 index.
  • This acquisition to nearly double the size of the Aerospace Systems Segment with complementary technologies for Parker-Hannifin. It will generate strong recurring revenue – adding 500 bps to the Aerospace aftermarket mix.
  • Meggitt and Parker are complementary across diverse portfolios of products. They will thus expand and develop core product lines, add new capabilities, and enable innovations on more electric, low-carbon, and other vital technologies.
  • Parker held cash and cash equivalents of $489.6 million as of March 31, 2021.
  • Price Action: PH shares are down 0.13% at $311.62, while MEGGF stock is up 56.32% at $10.16 on the last check Monday.

Posted In: BriefsM&ANews

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.