Parker Hannifin Corporation has reached an agreement to acquire Meggitt, the aerospace and defence motion and control technologies specialist, in a deal valued at £6.3bn.
The acquisition, which remains subject to regulatory clearances and approval by Meggitt’s shareholders, will see Parker purchase the entire issued and to be issued ordinary share capital of Meggitt.
Headquartered in Coventry, Meggitt had annual revenue of approximately $2.3bn in 2020 and employs over 9,000 staff serving customers globally. The company’s technology and products are present on almost every major aircraft.
In a statement, Parker said the combined group ‘is poised for strong growth, supported by the commercial aerospace recovery, and will be able to maximise its potential by building on a combined product portfolio and geographic footprint and by sharing operational and functional best practices.’
“The combination of Parker and Meggitt is an exciting opportunity for both companies’ team members, customers, shareholders and communities,” said Tom Williams, Chairman and Chief Executive Officer. “We strongly believe Parker is the right home for Meggitt. Together, we can better serve our customers through innovation, accelerated R&D and a complementary portfolio of aerospace and defence technologies.
“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. During our longstanding presence in the UK we have built great respect for Meggitt, its heritage, and its place in British industry. Our own journey over more than 100 years has taught us the importance of a strong culture and reputation.”
Under the terms of the agreement, there will be no job losses in R&D, product engineering or direct manufacturing, and the number of Meggitt’s UK apprentices will rise by at least ten per cent.
Meggitt’s existing level of R&D expenditure in the UK will be maintained and, subject to normal levels of aerospace industry growth and activity, will increase by at least 20 per cent over the next five years.