Parker Acquires Brazilian Manufacturer of Connectors and Instrumentation Products
Parker Hannifin, the global leader in motion and control technologies, has acquired Detroit Plasticos e Metais S/A (Detroit) of Sao Paulo, Brazil, a manufacturer of high performance fittings, valves, manifolds, and thermoplastic tubing.
Detroit s products are used throughout Latin America in oil and gas, petrochemical, pulp and paper, mining, transportation, steel, construction and agricultural markets. The company employs 210 people and its sales in fiscal year 2007 were approximately $17 million. The acquisition is expected to be accretive to Parker s earnings in the first full year following the closing of the transaction. The acquired company will become part of Parker s Fluid Connectors business in Brazil with future sales reported as part of the Industrial International segment. Terms of the transaction were not disclosed.
"The acquisition of Detroit Plasticos e Metais strengthens Parker s position as the number one supplier of instrumentation and connector products in Brazil," said Ricardo Machado, President of Latin American Group. "Detroit s products expand and complement our existing product portfolio. We look forward to integrating our sales forces and operations and to the growth we believe our expanded market coverage will make possible in emerging applications for instrumentation in Latin American markets."
"Parker is the best fit for Detroit and our product line is very synergistic with Parker s," said Fabio Seabra, leading shareholder of Detroit. "We believe this is a great growth opportunity for the company and will benefit all of its stakeholders. Also, there has been a strong relationship with Parker management dating back to the days of Detroit s founder and past president, Helio L. Seabra, which will allow for a smooth transition."
With annual sales exceeding $12 billion, Parker Hannifin is the world s leading diversified manufacturer of motion and control technologies and systems, providing precision-engineered solutions for a wide variety of mobile, industrial and aerospace markets. The company employs approximately 62,000 people in 48 countries around the world. Parker has increased its annual dividends paid to shareholders for 52 consecutive years, among the top five longest-running dividend-increase records in the S&P 500 index.
Source: Parker Hannifin Corp