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Parker Hannifin continues on acquisition trail with buyout of hose producers Dayco and ITR

Cleveland, OH -- Dec. 17, 2001 -- Parker Hannifin Corporation, following its October acquisition of U.S.-based Dayc...


Cleveland, OH — Dec. 17, 2001 — Parker Hannifin Corporation, following its October acquisition of U.S.-based Dayco Industrial, has announced it intends to acquire the operations of ITR SpA, a subsidiary of the SAIAG Group, for US$68 million. ITR is a leading Italian manufacturer of hose, fittings and rubber compounds for hydraulic, industrial and oil/gas applications.

The cash transaction, which is expected to close during the first quarter of the calendar year, is subject to regulatory approval.

ITR had sales of US $147 million in 2000. The company operates seven production facilities in Italy, Brazil and China, and sales offices in Italy, France, Spain, Germany, Belgium and the U.S. The operations, which will be integrated into Parker’s fluid connectors business, have 1,600 employees.

“The acquisition of ITR will complement the products Parker gained through its recent acquisition of Dayco,” said Phil Stamp, president of Parker’s Fluid Connectors Group – Europe. “Together, these will solidify Parker’s position in Europe as a major supplier of hydraulic hose and fittings for industrial applications. In addition, this acquisition will strengthen Parker’s presence in the Italian, Chinese and Brazilian markets.”

SAIAG said it is selling the ITR business because it does not fit with the company’s long-term strategic objectives. The SAIAG Group, which recorded a consolidated turnover of approximately 600 million Euro for 2000, produces and manufactures aluminum foils and thermoformed products for industrial and consumer applications.

Back on Oct. 19, 2001, Parker Hannifin acquired the assets associated with the global fluid management business of Dayco Industrial from Mark IV/BC Partners.

With 2000 revenues of US$304 million, the Dayco assets acquired include Imperial-Eastman products and a wide array of hydraulic and industrial hose and connectors, as well as proprietary compounding technologies for a broad range of applications. Terms of the deal were not disclosed.

The operations, which will be integrated into Parker’s fluid connectors business, have 2,365 people and 29 facilities in the United States, Canada, Australia and the United Kingdom.

“This business adds important new products to our fluid connectors line, and fully complements Parker’s broader capabilities,” said Parker operating officer Jack Myslenski. “The industrial products bring us a unique opportunity to merge technologies and assist customers in supplier rationalization. Now we’re capable of offering a wide range of highly proprietary rubber and thermoplastic hose assemblies that are essential to key niche markets such as mining, marine, petroleum, construction and injection molding.”

“It’s a perfect addition to our systems strategy,” added Parker CEO Don Washkewicz. “Envision the mining operation and oil platform with continuous service needs and various suppliers. With this acquisition, we can deliver a total-Parker solution, right on-site.”

The addition of Dayco’s fluid transfer business enhances Parker’s R&D capabilities, bringing proprietary compounds and enabling cost-effective technology transfer between the fluid-power and fluid-transfer businesses.

Economies of scale in procurement and manufacturing will allow both businesses to offer hose and fittings made from a wider variety of materials that will be compatible with a broader range of fluids and media, the company reports.

Parker Fluid Connectors group president Tom Mackie added a welcome to Dayco employees, with praise for their accomplishments. “This addition brings a number of unique products for mining and manufacturing, with a high degree of innovation in product development. In addition, this acquisition further solidifies Parker’s position in Australia and Canada.”

With annual sales of $6 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 45,000 people in 45 countries around the world. For more information, visit the company’s web site at www.parker.com.

By Bill Roebuck, Editor