CARY – LORD Corp, which had been shopping for a buyer, has found one.
Cleveland-based Parker Hannifin Corporation said Monday it is acquiring privately held LORD for $3.675 billion in an all-cash deal that is expected to receive regulatory approval within the next several months.
The boards of both companies have already approved the deal.
“With complementary business segments, coming together with Parker enables LORD to carry out our grander vision,” said LORD’S CEO Ed Auslander. “Parker is already a large tier one supplier in many areas, allowing our business lines immediate access to growth, additional markets, applications and new customers. In addition, the two companies are very much aligned when it comes to core values, great business acumen and cultural fit.”
Bloomberg News reported last month that the Cary-based adhesive and coatings manufacturer was exploring a sale that could be worth as much as $3 billion.
Citing an unnamed source, the report said the company was working with an adviser to run an auction process. Privately held, LORD has some 3,000 employees spread across its global operations.
The report comes on the heels of the company achieving a significant milestone last year, securing $1 billion in sales. In March, LORD broke ground on a new $15.4 million expansion project at its Hückelhoven, Germany facility.
By all accounts, LORD is one of the Triangle’s most unknown and biggest success stories. But according to Auslander, that’s the way the company likes it.
“We somewhat purposefully try to keep a low profile,” he told WRAL TechWire recently. “Our scope is global; we act globally. We don’t do a lot of manufacturing here. I’d venture to say that we really try to focus on our customers more than ourselves.”
Parker noted that LORD has annual sales of approximately $1.1 billion and employs 3,100 team members across 17 manufacturing and 15 research and development facilities globally.
“This strategic transaction will reinforce our stated objective to invest in attractive margin, growth businesses, such as engineered materials, that accelerate us towards top-quartile financial performance,” said Tom Williams, Chairman and CEO of Parker in a statement. “LORD will significantly expand our materials science capabilities with complementary products, better positioning us to serve customers in growth industries and capitalize on emerging trends such as electrification and lightweighting. This transaction will meaningfully transform our portfolio.”
Once the deal closes, LORD will become part of Parker’s Engineered Materials Group.