ACHRNEWS

Oct. 11, 2004: Parker Completes Acquisition Of Sporlan Valve

October 11, 2004
WASHINGTON, Mo. - Parker Hannifin Corp. and Sporlan Valve Co. jointly announced that Parker has completed its acquisition of Sporlan, one of the market leaders in refrigeration and air conditioning controls and systems. The deal is expected to be accretive to earnings in the first full fiscal year.

Headquartered here, Sporlan operates seven manufacturing facilities and employs about 1,000 people. Annual revenues are approximately $150 million. Parker said it will make Sporlan a new division within Parker's Climate and Industrial Controls Group.

"Parker's goal is to be number one or two in every market we serve," said Parker CEO Don Washkewicz. "Refrigeration is one of the high potential growth markets we've focused on for expansion, and the addition of Sporlan greatly enhances our leadership in refrigeration and air conditioning worldwide."

The acquisition is complementary, said Lynn Cortright, president of Parker's Climate and Industrial Controls Group. He said it is a matter of adding Sporlan's leadership in the commercial refrigeration and aftermarket distribution segments of the market to Parker's existing strong presence in the air conditioning segment. In addition, Cortright said Sporlan's expertise in electronic control technologies now enables Parker to offer customers more precise cooling solutions "that reduce consumption, provide system diagnostic capabilities, and deliver enhanced performance."

Cortright also noted, "Sporlan is a very successful company we've admired for a long time. Together, our two companies will have the most complete offering of valves and controls for the widest range of applications in the refrigeration and air conditioning markets today. From supermarket refrigeration to ice machines to residential and commercial air conditioning, Parker and Sporlan will have the ability to deliver total systems to our customers."

The addition of Sporlan is also designed to enhance Parker's research and development capabilities, said the two companies. It is the companies' belief that both businesses benefit from economies of scale in procurement and manufacturing, increased sales representation, and enhanced distribution.

"We've respected Parker for many years," said Ken Ohlemeyer, president, Sporlan Valve Co. "When it became clear that Sporlan was ready to enter a new level of growth, Parker quickly emerged as the best partner. Parker's global infrastructure presents a great opportunity to expand the reach of Sporlan's products all over the world. I'm confident that joining Parker will offer our customers significant advantages."

Publication date: 10/11/2004