Engineering company Parker-Hannifin to buy Clarcor in $4.3 billion deal

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Parker-Hannifin's offer of $83 per share represents a premium of about 17.8 percent to Clarcor's closing price on Wednesday. Clarcor shares were up about 15 percent at $81 in premarket trading on Thursday.

Parker-Hannifin, whose motion and control systems are used in air conditioners, refrigerators and the transportation industry, said the deal would add a broad range of industrial air and liquid filtration products to its portfolio.

Clarcor's strong presence in the United States and high percentage of recurring after-market sales would benefit Parker-Hannifin, the company's Chief Executive Tom Williams said in a statement.

Franklin, Tennessee-based Clarcor had total current liabilities of $302.8 million of Aug. 27. It had annual sales of about $1.48 billion in the year ended Nov. 28, 2015.

Parker-Hannifin said it plans to finance the deal using cash and new debt.

Morgan Stanley is Parker-Hannifin's financial adviser and Goldman Sachs is Clarcor's adviser.

(Reporting by Arunima Banerjee in Bengaluru; Editing by Savio D'Souza)

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