Parker Hannifin Ups Bid for Domnick Hunter Again

The bidding war between Parker Hannifin and Eaton for British filtration manufacturer Domnick Hunter continues, as Parker raised its bid yet again on Sept. 21 to 700 pence per share of Domnick Hunter stock, putting the deal at more than $440 million. Parker and Eaton have been bidding against each other since early August, when Parker made an offer valued at the time of $387 million.

Eaton Corporation, Cleveland, OH, entered into a bidding war for British filtration manufacturer Domnick Hunter plc with rival Parker Hannifin, Cleveland, OH back in August. Parker Hannifin made a cash offer in early August for £215.7 million ($387 million), then raised its offer on Aug. 24 to £232 million ($417 million). Two days later, Eaton made an offer of £242 million ($435 million). The winner gets a strong European foothold, where 40% of Domnick Hunter's products are sold.

On Sept. 16, Parker upped its previous bid from 650p to 680p per share after Eaton offered 675p on Aug. 26. Eaton replied on Sept. 20 with a 690p per share bid. A day later, Parker made the 700p offer. The deal is attracting attention, including speculation by analysts that General Electric may be getting into the fray.

Traded on the London Stock Exchange, Domnick Hunter had 2004 revenues of $280 million. It is an international group of companies specializing in the design and manufacture of filtration, separation and purification products for industrial and process industries, including strong sales into food and beverage manufacturers. The company operates in 25 countries and employs 1,900 people.

Eaton Corporation is a diversified industrial manufacturer with 2004 sales of $9.8 billion. Eaton is a global leader in electrical systems and components for power quality, distribution and control; fluid power systems and services for industrial, mobile and aircraft equipment; intelligent truck drivetrain systems for safety and fuel economy; and automotive engine air management systems, powertrain solutions and specialty controls for performance, fuel economy and safety. Eaton has 56,000 employees and sells products to customers in more than 125 countries.

Parker Hannifin, having a presence in the filtration market for over 40 years, said it has maintained a close working relationship with Domnick Hunter for more than two decades. This relationship has included professional collaboration among the management teams and employees on ways to best serve customers in the filtration markets. This collaboration has been strengthened further through a long standing practice of supplying products to one another. The two companies have had ongoing discussions in the past years on ways to combine and extend Domnick Hunter's market reach and product offerings to customers.