LONDON (ShareCast) - (ShareCast News) - Parker Hannifin has agreed to buy Clarcor for around $4.3bn in cash, including the assumption of net debt.
Under the terms of the deal, Parker - a supplier of hydraulics, pneumatics, electromechanical, filtration, process control, fluid and gas handling - will buy all of Clarcor's shares for $83.00 per share in cash, which is a premium of about 17.8% to the closing price on Wednesday.

Tennessee-based Clarcor is a diversified marketer and manufacturer of mobile, industrial and environmental filtration products with annual sales of approximately $1.4bn and 6,000 employees worldwide.

Parker said the group will add a broad array of industrial air and liquid filtration products and technologies to its filtration portfolio.

Chairman and chief executive officer Tom Williams said: "This strategic transaction is consistent with our stated objective to invest in businesses that accelerate Parker towards our goal of top quartile financial performance.

"The combination of Parker and Clarcor is highly complementary and offers a great opportunity to combine our strength in international markets and original equipment manufacturers with Clarcor's strong US presence and high percentage of recurring sales in the aftermarket."

Parker expects to realise annual run rate cost synergies of about $140m three years after closing through a variety of initiatives, such as the consolidation of the companies' supply chains.

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