Parker Acquires Asian Technology Company Which Produces Critical Elastomer Seals for Precision Markets
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CLEVELAND, April 3 -- Parker Hannifin Corporation (NYSE: PH), the world leader in motion and control technologies, today announced the acquisition of Rayco Technologies, an Asian elastomer and seal technology company with compounding, mixing and precision molding capabilities that serves several high-end markets such as electronics and medical. Revenues of the acquired business totaled approximately $26 million in 2006. Earnings are expected to be accretive to Parker in the first full year of operation. Terms of the deal were not disclosed.
Commencing operations in 1954, Rayco employs approximately 500 people, occupying more than 176,000 square feet of manufacturing and office space in Singapore and China. A global provider of safety critical parts and miniature seals, the company has two locations that serve disk drive, electronics, medical, semiconductor, consumer and automotive markets.
Rayco will be integrated into Parker's worldwide Seal group within the company's international industrial segment. "The acquisition of Rayco Technologies will expand Parker's capabilities in the fast growing markets in Asia, especially within industries that require high-quality, distinctive sealing technologies for critical applications," commented Heinz Droxner, Parker Seal Group President. "Rayco brings a quality team, impressive compounding, mixing and precision molding capabilities, and serves important markets currently untapped by Parker."
"The management and staff of Rayco fully support the transaction and look forward to growing within Parker's Seal group and continuing to serve new and existing customers," said CW Lim, Rayco Managing Director. "This is a move forward for Rayco and will open new opportunities for both companies."
With annual sales exceeding $9 billion, Parker Hannifin is the world's leading diversified manufacturer of motion and control technologies and systems, providing precision-engineered solutions for a wide variety of commercial, mobile, industrial and aerospace markets. The company employs more than 57,000 people in 43 countries around the world. Parker has increased its annual dividends paid to shareholders for 50 consecutive years, among the top five longest-running dividend-increase records in the S&P 500 index. For more information, visit the company's web site at www.parker.com/, or its investor information site at http://www.phstock.com/.
SOURCE: Parker Hannifin Corporation
CONTACT: Media, Christopher M. Farage, Vice President -- Corp.
Communications, +1-216-896-2750, cfarage@parker.com
Web site: http://www.phstock.com/
