CLEVELAND – After 95 years in operation – and multiple offers – one of the Triangle’s biggest success stories, Lord Corporation, is finally under new ownership.
Cleveland-based Parker Hannifin Corporation completed its acquisition of the Cary-based adhesive and coatings manufacturer for approximately $3.675 billion in cash on Tuesday.
“The strategic transaction creates a combined organization with strong materials science capabilities, electrification and aerospace product offerings that are highly complementary,” Parker said in its release.
“The transaction is expected to drive significant value for shareholders through increased organic growth, higher EBITDA margins, stronger cash flow and add to Parker’s earnings per share, excluding one-time costs and deal related amortization.
Added Tom Williams, Chairman and Chief Executive Officer of Parker: “We are excited about the opportunity to strengthen our technology portfolio by significantly bolstering our position in engineered materials. Acquiring Lord is expected to improve operating margins and its organic growth rate will help improve the resiliency of the Parker portfolio, strengthening our ability to achieve top quartile financial performance.”
Parker first announced the deal in April. The company said an integration team has been formed and a detailed integration plan is underway, “designed to allow for a smooth transition between Parker and LORD and to realize synergies between the two organizations.”
Founded in 1924 in Erie, Pennsylvania, LORD relocated its world headquarters to Cary in 1995. These days, it’s a global enterprise with more than 3,000 employees in 26 countries. (There are around 350 employees based in the Triangle.) Adapting to the ever-changing marketplace, its reach is wide with a foothold in key industries such as aerospace, automatic, oil and gas, and industrial.
Cary-based LORD Corporation is being sold for $3.7B in all-cash deal
