8-KAcquisitions & DispositionsFinancial EventsRegulation FD+1

Parker-Hannifin Corp 8-K Report, Acquisition Completed (Oct 29, 2019)

Filed October 29, 2019For Securities:PH

Summary

Parker-Hannifin Corporation (PH) has officially completed its acquisition of LORD Corporation for $3.675 billion in cash on a debt-free, cash-free basis. This significant transaction, announced earlier this year, is expected to be a major development for the company's future growth and market position. The acquisition was funded through a combination of existing resources and an $800 million delayed-draw term loan facility, which was fully drawn on the closing date to cover a portion of the purchase price and related expenses. Investors should note that while the acquisition is complete, detailed financial statements for LORD Corporation and pro forma financial information reflecting the combined entity will be provided in a subsequent amendment to this filing, no later than 71 days after the original filing date. The company also issued a press release on October 29, 2019, to announce the completion of the acquisition, which provides further context for this strategic move.

Key Highlights

  • 1Completion of the acquisition of LORD Corporation for $3.675 billion in cash (debt-free, cash-free basis) on October 29, 2019.
  • 2The acquisition was financed in part by an $800 million senior unsecured delayed-draw term loan, which was fully drawn on the closing date.
  • 3The acquisition marks a significant strategic move for Parker-Hannifin.
  • 4Detailed financial statements of LORD Corporation and pro forma financial information will be filed via amendment within 71 days.
  • 5A press release was issued on October 29, 2019, to formally announce the completion of the transaction.

Frequently Asked Questions

The total purchase price for LORD Corporation was $3.675 billion in cash, on a cash-free, debt-free basis, subject to customary post-closing adjustments.

The acquisition was funded by a combination of sources, including an $800 million senior unsecured delayed-draw term loan facility that was fully drawn on October 29, 2019, to cover a portion of the purchase price and associated fees and expenses.

Parker-Hannifin will provide the required financial statements of the acquired business (LORD Corporation) and pro forma financial information in an amendment to this Form 8-K filing, no later than 71 days after the original filing date.

While this filing focuses on the completion and financial aspects, the acquisition of LORD Corporation is a major strategic move by Parker-Hannifin. LORD Corporation is known for its expertise in adhesives, sealants, and motion control, suggesting potential synergies and expansion opportunities for Parker-Hannifin's product offerings and market reach.