Parker Hannifin Corporation, a global leader in motion and control technologies, announced it will acquire Filtration Group Corporation in a $9.25 billion cash transaction, marking a major expansion into industrial filtration. The deal values Filtration Group at 19.6 times its projected 2025 adjusted EBITDA, or 13.4 times including anticipated cost synergies.
The acquisition, expected to close within six to twelve months pending regulatory approval, will be financed through a combination of new debt and Parker’s existing cash reserves.
Filtration Group, a privately held US company affiliated with Madison Industries, specializes in advanced filtration technologies for high-value, performance-critical applications. Its products, built on proprietary media and technical expertise, serve key growth markets and boast strong, validated brands.
Approximately 85% of its revenue comes from aftermarket sales, providing recurring revenue streams across multiple platforms. The company anticipates 2025 sales of $2 billion with an adjusted EBITDA margin of 23.5% and employs roughly 7,500 worldwide.
“This strategic acquisition strengthens our portfolio, accelerates growth, and boosts profitability,” said Jenny Parmentier, Parker’s Chairman and CEO. “Filtration Group’s complementary capabilities and robust aftermarket presence enhance our global customer reach. Leveraging our proven Win Strategy, we see clear opportunities for cost synergies, EPS growth, and shareholder value creation.”
Jon Pratt, President and CEO of Filtration Group, added: “We are thrilled to join Parker. Together, our advanced filtration technologies will deliver a broader range of solutions to customers worldwide. Parker’s scale, technical expertise, and disciplined growth approach position Filtration Group for continued success.”
Parker estimates pre-tax cost synergies of approximately $220 million by year three after closing. The acquisition is expected to be accretive to Parker’s organic growth, EBITDA margin, adjusted EPS, and cash flow, and is projected to achieve a high single-digit cash return on invested capital by year five.
With this acquisition, Parker Hannifin is set to become one of the world’s largest industrial filtration companies, further cementing its position as a leader in high-performance technologies for critical industrial markets.
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