US-engineering company Parker Hannifin is to buy UK-based aerospace and defense company Meggitt in an almost US$10 billion (£7.1 billion) deal.
Meggitt employs more than 9,000 people around the world and is headquartered in Coventry, UK. The company supplies sub-systems and components to OEMs, such as landing gear, braking systems, wheels, sensors and engine parts.
Cleveland-headquartered Parker employs around 55,000 people in 50 countries and supplies products such as pumps, filters, motors, drives and actuators across several industries, including aerospace. The two companies have complementary products in the aerospace sector and Parker’s acquisition of Meggitt will nearly double the size of its Aerospace Systems division.
The Acquisition remains subject to satisfaction of a number of conditions, including approval by Meggitt’s shareholders and the UK Government. Meggitt is considered a critical supplier by the Government to UK defense companies BAE Systems and Rolls-Royce.
Parker has made several assurances over security protocols while committing to increasing the company’s R&D spend by 10%, maintaining its headquarters and renaming the company Parker-Meggitt.
Tom Williams, Chairman and CEO of Parker said, “We are committed to being a responsible steward of Meggitt and are pleased our acquisition has the full support of Meggitt’s Board. We fully understand these responsibilities and are making a number of strong commitments that reflect them.”
The takeover follows the announcement last month that another UK-defense supplier, Ultra Electronics, is to be bought by rival firm Cobham for £2.6 billion (US$3.6 billion). Cobham, originally a UK-company, was taken over by US private equity Advent International in January 2020.