8-KAcquisitions & DispositionsMaterial AgreementsFinancial Events+1

Parker-Hannifin Corp 8-K Report, Material Agreement (Feb 28, 2017)

Filed February 28, 2017For Securities:PH

Summary

Parker-Hannifin Corporation (PH) filed an 8-K report on February 27, 2017, detailing two significant events that occurred on February 24 and February 28, 2017. Firstly, the company successfully completed a private offering of senior notes, raising a substantial $1.3 billion in USD and €700 million in EUR. These notes have varying maturity dates and interest rates, with the proceeds earmarked to finance the acquisition of CLARCOR, Inc. Secondly, the 8-K confirms the completion of Parker-Hannifin's acquisition of CLARCOR, Inc. for $83.00 per share in cash. This strategic move, financed in part by the new senior notes issuance, marks a significant expansion for Parker-Hannifin. Investors should note that detailed financial statements for the acquired CLARCOR business and pro forma financial information will be filed via amendment at a later date.

Key Highlights

  • 1Completion of a private offering of $700 million in 3.250% senior notes due 2027 and $600 million in 4.100% senior notes due 2047.
  • 2Issuance of €700 million in 1.125% senior notes due 2025.
  • 3Net proceeds from the note offerings were used to finance the acquisition of CLARCOR, Inc.
  • 4Successful completion of the acquisition of CLARCOR, Inc. on February 28, 2017, for $83.00 per share in cash.
  • 5Clarcor now operates as a wholly owned subsidiary of Parker-Hannifin.
  • 6The company will file financial statements and pro forma information for the CLARCOR acquisition via amendment at a later date.

Frequently Asked Questions

Parker-Hannifin raised a total of $1.3 billion in U.S. dollar-denominated senior notes (comprising $700 million due 2027 and $600 million due 2047) and €700 million in Euro-denominated senior notes due 2025.

The proceeds from the senior notes offering, along with other financing sources, were used to fund the acquisition of CLARCOR, Inc.

Each share of CLARCOR common stock was acquired for $83.00 in cash, without interest.

Parker-Hannifin stated that the financial statements of the acquired business and pro forma financial information will be provided via amendment to this 8-K filing no later than 71 days after the required filing date.