Parker Hannifin to buy Lord Corp for about $3.68 billion

(Reuters) - U.S. industrial conglomerate Parker Hannifin Corp said on Monday it would buy privately held adhesives and coatings maker Lord Corp for about $3.68 billion in cash, in a move to strengthen its aerospace and defense businesses.

Lord also provides vibration and motion control technologies used in the aerospace, automotive and industrial markets.

Cary, North Carolina-based Lord, which has annual sales of about $1.1 billion, will expand Parker Hannifin’s engineered materials business, which makes sealing devices for markets including aerospace, defense and automotive.

Parker Hannifin’s engineered materials business is part of its larger diversified industrial unit, which reported sales of $11.98 billion in 2018, constituting about 84 percent of the company’s overall revenue.

The deal is expected to close within the next four to six months, Parker Hannifin said.

Barclays served as financial adviser to Parker and Morgan Stanley was Lord’s financial adviser.

Reporting by Ankit Ajmera in Bengaluru; Editing by James Emmanuel