Parker-Hannifin to Buy Filtration Group for $9.25 Billion

Parker-Hannifin has agreed to buy Filtration Group for $9.25 billion, adding a major filtration-technologies manufacturer to its industrial portfolio.

The motion-control technologies company said Monday that it will finance the purchase with a combination of new debt and cash on hand. The transaction, subject to regulatory approvals and other customary closing conditions, is expected to close within six to 12 months.

Filtration Group, a privately held affiliate of Madison Industries, makes filtration systems for industrial, automotive and heating-and-cooling applications. About 85% of its sales come from the aftermarket, providing steady recurring revenue across multiple product lines, according to Parker-Hannifin.

Filtration Group, with about 7,500 employees, expects sales of approximately $2 billion in 2025.

“This strategic transaction continues our investment in high quality businesses that continue to transform our portfolio, accelerate sales growth and improve profitability,” Parker-Hannifin Chief Executive Jenny Parmentier said, adding that the acquisition will create one of the largest global industrial filtration businesses.

Cleveland-based Parker-Hannifin manufactures motion and control technologies with annual sales of nearly $20 billion. Bloomberg previously reported that the company was in talks to buy Filtration Group.

Write to Connor Hart at Connor.Hart@wsj.com