Parker Hannifin to acquire KKR’s CIRCOR Aerospace for $2.55B

Parker Hannifin (NYSE:PH) has signed a definitive agreement to acquire CIRCOR Aerospace from KKR and CIRCOR International, Inc. for a cash purchase price of $2.55 billion, marking a significant expansion for the industrial giant's flight-critical components division.

The transaction is structured on a cash-free, debt-free basis and includes expected tax benefits with an estimated net present value of approximately $75 million.

Cleveland-based Parker Hannifin stated that the purchase price, net of these tax attributes, represents 22.7 times CIRCOR Aerospace's estimated calendar year 2026 adjusted EBITDA, or 18.2 times when factoring in projected annual cost synergies of roughly 10% of sales.

CIRCOR Aerospace, which manufactures fluid control, pneumatic, electromechanical, and actuation components for commercial aviation and defense systems, estimates calendar year 2026 sales of approximately $270 million with adjusted EBITDA margins exceeding 40%.

The acquisition integrates a highly engineered portfolio with production sites across the United States and the EMEA region into Parker Hannifin’s existing motion and control technologies network.

The divestiture marks a rapid realization for KKR, which originally took parent company CIRCOR International private for $1.8 billion in 2023 via its North America Fund XIII.

Following the completion of the aerospace sale, funds managed by KKR will retain ownership of CIRCOR’s separate Naval and Industrial business units, keeping exposure to multi-year defense modernization and global industrial supply chain lines.

The corporate transaction will also trigger a localized payout structure under a broad employee broad-based ownership program instituted by CIRCOR in early 2024.

At the deal's final closing, all CIRCOR employees are slated to receive a dividend distribution funded by a portion of the aggregate sale proceeds.

The transaction is projected to close during the second half of calendar year 2026, subject to customary adjustments, localized closing conditions, and mandatory antitrust regulatory clearances.