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Parker Hannifin collects initial bids for Meggitt’s composite manufacturing division

Parker Hannifin [NYSE:PH], a Cleveland-based industrial and aerospace company, collected initial bids in the sale of Meggitt’s composite manufacturing division last week, said three sources familiar with the matter.

This news service reported last month that Parker Hannifin was exploring a sale of Meggitt’s composite manufacturing division with Lazard advising.

Private equity firms and strategics are showing interest in the division, the three sources said.

Meggitt’s composite manufacturing division is expected to generate around USD 80m in EBITDA and USD 400m in sales for 2024, as reported.

The division is made up of composite parts and composite fuel tanks businesses and is entirely based in the US. The composites parts piece makes composite engine parts. The fuel tank portion of the division makes fuel systems for aircraft and helicopters. It includes what was formerly EDAC Composites, a business Meggitt acquired in 2015 from Greenbriar Equity for USD 340m, two of the sources said.

Parker Hannifin operates in two segments: diversified industrial and aerospace systems. The company completed its USD 7.2bn acquisition of Meggitt in September 2022 following European Commission clearance of the deal that April.

Parker Hannifin has a USD 68.20bn market capitalization.

Lazard declined to comment. Parker Hannifin did not return requests for comment.