Summary
Parker-Hannifin Corporation (PH) announced on September 16, 2019, the successful completion of its acquisition of EMFCO Holdings Incorporated, the parent of Exotic Metals Forming Company LLC. This strategic move was executed through a cash payment of $1.725 billion on a cash-free, debt-free basis, subject to customary post-closing adjustments. The acquisition is expected to bolster Parker-Hannifin's existing business segments and contribute to future growth. To finance this significant acquisition, Parker-Hannifin utilized a newly established $925 million senior unsecured delayed-draw term loan facility, which was drawn in full on the closing date. This financing will cover a portion of the purchase price and associated expenses. Investors should monitor the integration of EMFCO and its impact on Parker-Hannifin's financial performance and leverage ratios.
Key Highlights
- 1Completed acquisition of EMFCO Holdings Incorporated (parent of Exotic Metals Forming Company LLC) for $1.725 billion in cash.
- 2Acquisition is on a cash-free, debt-free basis, subject to customary post-closing adjustments.
- 3Financed a portion of the acquisition with a $925 million senior unsecured delayed-draw term loan facility.
- 4The term loan facility was fully drawn on September 16, 2019, to fund the acquisition and related costs.
- 5The acquisition was previously announced on July 26, 2019, through a Share Purchase Agreement.
- 6The company issued a press release on September 16, 2019, to announce the completion of the transaction.