Parker Hannifin Increases Cash Offer to Acquire domnick hunter
Parker Hannifin Corporation has increased its cash offer for all outstanding shares of domnick hunter from its previous offer made on September 16, 2005. The offer is subject to the necessary level of domnick hunter shareholder acceptance.
Following the announcement by the UK Office of Fair Trading, all competition consents have been obtained to allow for Parker Hannifin's acquisition of the outstanding shares of domnick hunter. In addition, the directors of domnick hunter have again unanimously recommended that all domnick hunter shareholders accept the increased offer, which is also supported by domnick hunter senior management.
Parker Hannifin, having a presence in the filtration market for over 40 years, has maintained a close working relationship with domnick hunter for more than two decades. This relationship has included professional collaboration among the management teams and employees on ways to best serve customers in the filtration markets. This collaboration has been strengthened further through a long standing practice of supplying products to one another. The two companies have had ongoing discussions in the past years on ways to combine and extend domnick hunter's market reach and product offerings to customers.
Parker Hannifin's original offer was recommended by the Board of domnick hunter, and they have again affirmed their support by unanimously recommending the increased offer. Throughout the course of discussions between the companies, Parker Hannifin has been encouraged by the favorable reception from both domnick hunter's management and employees, following briefings they have received regarding the proposed combination with Parker Hannifin.
On August 2, 2005 Parker and the domnick hunter group plc. had jointly announced that Parker agreed to a cash offer for all outstanding shares of domnick hunter. Again on August 24 Parker announced that it has increased its cash offer for all outstanding shares of domnick hunter from its previous offer. And on September 16 Parker increased its offer once more and the directors of domnick hunter have once again unanimously recommended that all domnick hunter shareholders accept the increased offer, which is also supported by domnick hunter senior management.
The domnick hunter group had 2004 revenues of approximately $280 million. The acquisition is expected to be accretive to earnings after integration costs and synergies within the first full year of integration. The transaction is expected to close in the fall of 2005.
Currently traded on the London Stock Exchange, domnick hunter, founded in 1963, is an international group of companies specializing in the design and manufacture of filtration, separation, and purification products and technologies for a wide range of markets. The domnick hunter group is headquartered in Durham, United Kingdom, and employs over 1,900 people, who will become part of Parker's Filtration Group, with results reported within the company's Industrial Segments.
With annual sales exceeding $8 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 commercial, mobile, industrial and aerospace markets. The company employs more than 50,000 people in 48 countries around the world. Parker has increased its annual dividends paid to shareholders for 49 consecutive years, among the top five longest-running dividend-increase records in the S&P 500 index.
Source: Parker Hannifin Corp