Parker Hannifin Corp. announced Tuesday that it has reached an agreement to acquire Filtration Group Corp. in a deal worth $9.25 billion.
Filtration Group, an affiliate of Madison Industries based in suburban Chicago, is a global provider of filtration solutions across the industrial, ventilation, life sciences and other sectors. The company employs approximately 7,500 people worldwide and expects to see $2 billion in sales during the 2025 calendar year, officials said.
Parker executives said that deal would add complementary technologies in key markets with strong brand names, creating “one of the largest global industrial filtration businesses.” Company leaders added that because most of Filtration Group’s sales are generated in the aftermarket, the tie-up would create “strong recurring revenue streams.”
The proposed deal does not include Filtration Group’s Facet fuel filtration business, which will remain with Madison.
“This strategic transaction continues our investment in high quality businesses that continue to transform our portfolio, accelerate sales growth and improve profitability,” Parker Chairman and CEO Jenny Parmentier said in a statement.
“This acquisition will bring together two companies with deeply aligned cultures and a commitment to innovation,” added Filtration Group President and CEO Jon Pratt. “After years of building an innovative filtration and separation science business and creating incredible value as a private company, Filtration Group looks forward to its next chapter as part of Parker.”
The transaction is expected to close in 2026, subject to regulatory approval and other closing conditions. Parker anticipates pre-tax cost “synergies” of about $220 million within three years of closing.
The announcement followed the Thursday release of Parker’s financial results for its fiscal first quarter, which saw improvements in net sales and earnings. Parker plans to fund the Filtration Group purchase with new debt and cash on hand.
