Acquires Three Companies Contributing a Combined $452 Million in Annualized
Revenues and Supporting International Expansion and New Market Growth
Opportunities
CLEVELAND, Oct. 1 /PRNewswire-FirstCall/ -- Parker Hannifin Corporation
(NYSE: PH), the world leader in motion and control technology, today
announced that it has acquired three companies whose total sales for their
most recently reported fiscal years approaches one half billion dollars.
Parker is remaining focused on executing its plans for growth throughout
the current economic turbulence.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990816/PHLOGO )
"We continue to maintain our long-term focus on growth and positioning
Parker for sustained financial performance," said Don Washkewicz, Chairman,
Chief Executive Officer and President. "The acquisitions we have announced
today bring us new technologies and market opportunities. They also signal
an ongoing commitment to our growth strategy, managing our assets
conservatively, and making appropriate use of strong cash flows."
The three businesses that Parker has acquired, Legris, SA; Origa Group;
and Hargraves Technology Corporation, reflect the company's continuing goal
of diversifying operations internationally, extending and complementing
existing technologies, and taking advantage of opportunities in less
cyclical end markets, such as life sciences.
Parker's acquisitions announced today include:
Expanded pneumatic and hydraulic capability in Europe
Legris SA, headquartered in Rennes, France, is a leading manufacturer
of fluid circuit components and systems for pneumatic, hydraulic, and
chemical processing applications. These products are typically used in
automotive process, transportation, agricultural machinery, food
processing, construction and ship building industries.
In 2007, Legris recorded revenues of 233 million euros (approximately
$340 million). The company has approximately 1,800 employees, 10 production
facilities, and a global network of 25 international sales offices. The
acquisition is expected to be accretive to earnings in the first full year
of operations. Legris sales will be recorded within the Industrial
International (90%) and Industrial North America (10%) segments of Parker's
global fluid connectors group.
"Legris enhances Parker's worldwide presence in the pneumatic and
hydraulic fluid circuit systems market while significantly bolstering our
European presence," said Bob Bond, President of Parker's Fluid Connectors
Group. "Legris' strong brand recognition and innovative products and
systems are widely available through a well established distribution
network, and complement our ability to provide customers with the
industry's broadest package of fluid circuit technology. We are very
excited to have Legris join Parker and equally eager to begin working with
our new colleagues for the benefit of our customers."
Hugues Robert, CEO of Groupe Legris Industries, the parent company of
Legris SA, added, "We are proud of building Legris SA as the worldwide
leader in its field over the years, and proud to have our former company
join the global leader of the fluid control industry. Culture and
management in Legris SA and Parker, which are of utmost importance for us,
are of a similar essence, and we are confident that this transaction will
strongly benefit both parties."
Broader actuator offering, internationally
Origa Group is a manufacturer of rodless pneumatic actuators, electric
actuators, FRLs (filter regulator lubricator), pneumatic cylinders, and
valves used in the transportation, semiconductor, packaging and conveying
markets. Its most recently reported annual sales were approximately 67
million euros (approximately $98 million). The Group employs approximately
350 people and has major operations in Filderstadt, Germany, Wiener
Neustadt, Austria, Glendale Heights, Illinois in the United States, and
smaller facilities in several other international locations.
"We're excited about the opportunities this combination offers for
Parker," said Roger Sherrard, President of Parker's Automation Group.
"Origa is a respected manufacturer and their world class rodless actuator
line strengthens the depth and breadth of our global product portfolio. The
Origa brand is well known particularly in European markets that offer
growth opportunities for Parker."
"We are pleased that Origa is now a unit of the world's leading motion
and control technology company," said Dieter Friedemann for Origa Group.
"Parker has a reputation for leveraging the capabilities of the businesses
it acquires yielding accelerated growth and profitability. That is good
news for Origa customers, suppliers and employees."
Focused life sciences platforms
Hargraves Technology Corporation of Mooresville, North Carolina, is a
leader in the innovative design and manufacture of miniature liquid and
pneumatic diaphragm pumps, control valves and system solutions. These
products control movement and direction of precise amounts of fluid in
medical devices and life science analytical instrumentation as well as
diagnostic, gas detection, and printing systems. Hargraves' sales for the
fiscal year ending December 31, 2007 were approximately $14 million.
"Hargraves' products extend Parker's position as a fluidics provider to
the life science and medical markets," said Roger Sherrard, President of
Parker's Automation Group. "These products complement our existing
capabilities and will strengthen our customer relationships through a
broader offering and the ability to provide integrated solutions."
"There are many synergies between Parker and Hargraves Technology which
date back to the acquisition of Pneutronics, which my late husband Don
Hargraves founded," said Linnea Hargraves, Chairman/CEO of Hargraves
Technology. "We believe that Hargraves' innovative products and people will
be an excellent fit within Parker and Parker's global scope will enable our
products to serve a wider market."
Parker will combine the acquisition with its technology platforms for
diaphragm pumps, miniature solenoid and proportional valves, electronic
pressure controls, liquid and aggressive media valves and system
integration capability to establish a newly created Precision Fluidics
Division. This division is focused on medical, analytical, life sciences
and printing markets worldwide.
With annual sales exceeding $12 billion, Parker Hannifin is the world's
leading diversified manufacturer of motion and control technologies and
systems, providing precision-engineered solutions for a wide variety of
commercial, mobile, industrial and aerospace markets. The company employs
approximately 62,000 people in 48 countries around the world. Parker has
increased its annual dividends paid to shareholders for 52 consecutive
years, among the top five longest-running dividend-increase records in the
S&P 500 index. For more information, visit the company's web site at
http://www.parker.com , or its investor information site at
http://www.phstock.com .
Forward-Looking Statements:
Forward-looking statements contained in this and other written and oral
reports are made based on known events and circumstances at the time of
release, and as such, are subject in the future to unforeseen uncertainties
and risks. All statements regarding future performance, earnings
projections, events or developments are forward-looking statements. It is
possible that the future performance and earnings projections of the
company and individual segments may differ materially from current
expectations, depending on economic conditions within its mobile,
industrial and aerospace markets, and the company's ability to maintain and
achieve anticipated benefits associated with announced realignment
activities, strategic initiatives to improve operating margins, and growth,
innovation and global diversification initiatives. A change in economic
conditions in individual markets may have a particularly volatile effect on
segment results. Among the other factors which may affect future
performance are: changes in business relationships with and purchases by or
from major customers or suppliers, including delays or cancellations in
shipments or significant changes in financial condition; uncertainties
surrounding timing, successful completion or integration of acquisitions;
threats associated with and efforts to combat terrorism; uncertainties
surrounding the ultimate resolution of outstanding litigation; competitive
market conditions and resulting effects on sales and pricing; increases in
raw material costs that cannot be recovered in product pricing; the
company's ability to manage costs related to employee retirement and health
care benefits and insurance; and global economic factors, including
manufacturing activity, air travel trends, currency exchange rates,
difficulties entering new markets and general economic conditions such as
inflation, interest rates and credit availability. The company makes these
statements as of the date of this disclosure, and undertakes no obligation
to update them.
SOURCE Parker Hannifin Corporation
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Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/19990816/PHLOGO
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CONTACT:
Media: Christopher M. Farage - Vice
President, Corp. Communications, +1-216-896-2750,
cfarage@parker.com, Financial Analysts: Pamela Huggins, Vice
President & Treasurer, +1-216-896-2240, phuggins@parker.com, both
of Parker Hannifin Corporation
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