PH Parker-Hannifin Corporation

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Executive Summary

Parker-Hannifin acquires CIRCOR Aerospace for $2.55B cash, adding flight-critical motion/flow control capabilities for commercial and defense platforms. The target has $270M in expected CY2026 sales at >40% adjusted EBITDA margin, implying a 22.7x EBITDA multiple (18.2x including synergies). Deal is expected to close H2 2026.

Key Financial Metrics

Actionable Insight

Key Facts

• Cash purchase price of $2.55 billion, net of ~$75M NPV of expected tax benefits
• Purchase price represents 22.7x CY2026 estimated adjusted EBITDA, or 18.2x including expected cost synergies of ~10% of sales
• $270M expected CY2026 sales with >40% adjusted EBITDA margin before synergies
• Expected to close in second half of calendar year 2026
• 80% OEM business balanced 50/50 across commercial and defense
• Expected to be immediately accretive to sales growth, EBITDA margins, adjusted EPS and cash flow
• Target is the Commercial and Defense Aerospace business of CIRCOR International sold on a cash-free, debt-free basis

Financial Impact

$2.55 billion cash acquisition; 22.7x EBITDA multiple before synergies; target has $270M sales and >40% adjusted EBITDA margin; expected immediately accretive to Parker-Hannifin's growth, margins, EPS and cash flow

Risk Factors

• Regulatory approval could be delayed or conditioned, potentially pushing close beyond H2 2026
• Integration risk: CIRCOR Aerospace margins (>40%) need to be maintained post-close; synergy capture of ~10% of sales is ambitious
• Double-digit sales growth at the target relies on commercial and defense program positions, which could be disrupted by geopolitical or supply-chain issues

Market Snapshot

Documents Analyzed

This report is based on 1 press release from GlobeNewswire.

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