Story ID: 
Parker-Hannifin Completes Buy of Meggitt
By: Kerry Lynch
Caption: Noting their complementary product lines, Parker executives said the addition of Meggitt will help grow its electric and clean technology businesses.
Word Count: 478
Parker-Hannifin has substantially expanded its footprint in the aerospace supply chain with the completion of its £6.3 billion ($7.24 billion) acquisition of UK-based Meggitt. Announced on Tuesday, the completion comes a little more than a year after the two companies announced plans for the merger and two weeks after they had noted that they had cleared regulatory requirements.

The acquisition brings into the Parker fold a company that employs more than 9,000, operates 40 manufacturing sites around the world and has a diverse aerospace and defense portfolio with products on most aircraft platforms.

Parker-Hannifin—a company that had $16 billion in annual sales in fiscal 2022, employs 55,000, and has 350 manufacturing facilities globally—is placing Meggitt under its Parker Aerospace division, creating a unit with an array of airframe and engine technologies. Parker executives said the combination will strengthen its abilities to build a more-electric portfolio and provide more innovative approaches to advanced air mobility and clean technologies.

Noting that the companies have common cultures and common businesses, the executives also said the combination will enable the companies to be better able to bring solutions to customers with a single point of contact and accountability. “We are going to be able to do more for them than we’ve ever done in the past,” said Parker chairman and CEO Tom Williams.

While both have a significant presence in the aerospace arena, Parker stressed the complementary nature of their product lines: Parker provides hydraulics, flight control actuation, fuel systems, and wing sealing and shielding on airframes, among other products, while Meggitt provides avionics and sensors, fuel tanks and bladders, fire protection, electric power, and braking systems on airframes.

Meggitt's products for engines are similarly aligned with Parker's providing engine mounts, fuel and exhaust nozzles, oil pumps and tanks, and Meggitt, additionally, produces sensors, composites, valves, and thermal management, among other products and technologies.

Williams called the merger of the two aerospace giants “a compelling strategic and cultural combination” and said, “Meggitt’s complementary product portfolio and geographic footprint, as well as its proprietary and differentiated technologies, will significantly enhance Parker’s capabilities, positioning us to provide a broader suite of solutions for aircraft and aero-engine components and systems. This acquisition continues the transformation of Parker’s portfolio with greater exposure to longer cycle, more resilient businesses that are well positioned for secular growth trends.”

While merging international entities, Roger Sherrard, president of Parker’s Aerospace Group, noted Meggitt’s heritage and place in British industry and said, “We are committed to being a responsible steward of the company and we plan to continue to innovate and invest in key markets that are of importance to Meggitt.”

He noted that the companies have established a joint integration team that will work on the transition for customers, distributors, and suppliers.