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Parker-Hannifin Bets $9.25 Billion on Industrial Filtration Growth

By  |  November 11, 2025

Parker-Hannifin Corp. has reached an agreement to acquire Filtration Group from Madison Industries in a deal valued at $9.25 billion, marking a significant move to strengthen its industrial filtration portfolio. According to Bloomberg, the purchase price represents about 19.6 times Filtration Group’s estimated adjusted earnings before interest, taxes, depreciation, and amortization for 2025. The companies expect the deal to close within six to twelve months.

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    The transaction stands as Parker-Hannifin’s second-largest acquisition to date, following its $9.8 billion purchase of aerospace and defense supplier Meggitt in 2022, per Bloomberg data. The Cleveland-based company, known for its motion and control technologies, has made a series of strategic moves in filtration — including its $4.3 billion acquisition of Clarcor in 2017.

    Analysts at Melius Research commented that “Parker is an exceptional operator of more asset-intensive businesses, able to drive synergies not just by leveraging its global scale and strong distribution channel, but also via deployment of lean manufacturing.” They added that the company has historically generated strong returns from past acquisitions, even when purchase prices appeared high.

    Filtration Group, a global leader in filtration technology, generates approximately $2 billion in annual revenue and operates across 165 locations in 27 countries. The firm produces filters used in industrial, automotive, and HVAC applications. According to Bloomberg, the company had been exploring a potential sale in recent months.

    Madison Industries, a privately held firm founded by entrepreneur Larry Gies, built the Filtration Group through a series of acquisitions over time. The Chicago-based company invests in industrial and environmental businesses across multiple sectors, with a focus on sustainable growth and operational efficiency.

    Advising Parker-Hannifin on the transaction were Barclays Plc, along with law firms Jones Day and Eversheds Sutherland. Filtration Group received counsel from Lincoln International LLC and Paul Hastings.

    The acquisition underscores Parker-Hannifin’s long-term strategy of expanding its industrial footprint through high-value acquisitions, with Bloomberg noting that the company continues to seek opportunities that align with its core expertise in engineering and manufacturing.

    Source: Bloomberg