Filtration, fluid connectors and motion control products manufacturer Parker Hannifin announced plans to acquire Filtration Group Corporation for $9.25 billion in a move that will add a major industrial filtration technologies capabilities to its portfolio.

The purchase price is expected to be financed with new debt and cash on hand. Subject to closing conditions and customary approvals, the transaction and is expected to close within six to 12 months.

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An affiliate of Madison Industries, privately-owned Filtration Group is headquartered in Oak Brook Terrace, IL and manufactures highly engineered products using proprietary media. The company leverages technical and application knowledge and processes to serve high-value, performance-critical applications. Approximately 85% of Filtration Group’s sales are generated in the aftermarket, creating recurring revenue streams across multiple product platforms. Sales of $2 billion are expected for calendar year 2025 with adjusted EBITDA margin of 23.5%. The company employs approximately 7,500 team members serving customers around the world.

“This strategic transaction continues our investment in high quality businesses that continue to transform our portfolio, accelerate sales growth and improve profitability,” Parker Hannifin Chairman and CEO Jenny Parmentier said in a Nov. 11 news release. “The acquisition will create one of the largest global industrial filtration businesses. Filtration Group’s complementary capabilities and strong aftermarket presence enhances our ability to serve customers globally. Leveraging The Win Strategy as a part of our proven operations and integration playbook, we see clear opportunities to deliver strong cost synergies, compound earnings per share growth and create shareholder value.”

“Filtration Group is excited to become part of Parker,” added Jon Pratt, President and CEO of Filtration Group. “Together, our mission-critical offering of advanced filtration technologies will create a broader portfolio of solutions for customers in key growth markets around the world. Parker is an exceptional company, and we are confident Filtration Group will benefit from Parker’s increased scale, technical knowledge and disciplined approach to driving growth and operational excellence.”

Cleveland-based Parker estimates pre-tax cost synergies of approximately $220 million by the end of year three following completion of the transaction. The deal is expected to be accretive to Parker’s organic growth, synergize EBITDA margin, adjusted EPS and cash flow, and to achieve a high single-digit cash ROIC by year five.

In May, Parker Hannifin announced a leadership succession plan for its filtration business.