CLEVELAND, Dec. 1 /PRNewswire-FirstCall/ -- Parker Hannifin (NYSE: PH),
the global leader in motion and control technologies, has acquired Detroit
Plasticos e Metais S/A (Detroit) of Sao Paulo, Brazil, a manufacturer of high
performance fittings, valves, manifolds, and thermoplastic tubing. Detroit's
products are used throughout Latin America in oil and gas, petrochemical, pulp
and paper, mining, transportation, steel, construction and agricultural
markets. The company employs 210 people and its sales in fiscal year 2007
were approximately $17 million. The acquisition is expected to be accretive to
Parker's earnings in the first full year following the closing of the
transaction. The acquired company will become part of Parker's Fluid
Connectors business in Brazil with future sales reported as part of the
Industrial International segment. Terms of the transaction were not disclosed.
"The acquisition of Detroit Plasticos e Metais strengthens Parker's
position as the number one supplier of instrumentation and connector products
in Brazil," said Ricardo Machado, President of Latin American Group.
"Detroit's products expand and complement our existing product portfolio. We
look forward to integrating our sales forces and operations and to the growth
we believe our expanded market coverage will make possible in emerging
applications for instrumentation in Latin American markets."
"Parker is the best fit for Detroit and our product line is very
synergistic with Parker's," said Fabio Seabra, leading shareholder of Detroit.
"We believe this is a great growth opportunity for the company and will
benefit all of its stakeholders. Also, there has been a strong relationship
with Parker management dating back to the days of Detroit's founder and past
president, Helio L. Seabra, which will allow for a smooth transition."
With annual sales exceeding $12 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
mobile, industrial and aerospace markets. The company employs approximately
62,000 people in 48 countries around the world. Parker has increased its
annual dividends paid to shareholders for 52 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 http://www.parker.com, or its
investor information site at http://www.phstock.com.
Forward-Looking Statements:
Forward-looking statements contained in this and other written and oral
reports are made based on known events and circumstances at the time of
release, and as such, are subject in the future to unforeseen uncertainties
and risks. All statements regarding future performance, earnings projections,
events or developments are forward-looking statements. It is possible that the
future performance and earnings projections of the company and individual
segments may differ materially from current expectations, depending on
economic conditions within its mobile, industrial and aerospace markets, and
the company's ability to maintain and achieve anticipated benefits associated
with announced realignment activities, strategic initiatives to improve
operating margins, and growth, innovation and global diversification
initiatives. A change in economic conditions in individual markets may have a
particularly volatile effect on segment results. Among the other factors which
may affect future performance are: changes in business relationships with and
purchases by or from major customers or suppliers, including delays or
cancellations in shipments or significant changes in financial condition;
uncertainties surrounding timing, successful completion or integration of
acquisitions; threats associated with and efforts to combat terrorism;
uncertainties surrounding the ultimate resolution of outstanding litigation;
competitive market conditions and resulting effects on sales and pricing;
increases in raw material costs that cannot be recovered in product pricing;
the company's ability to manage costs related to employee retirement and
health care benefits and insurance; and global economic factors, including
manufacturing activity, air travel trends, currency exchange rates,
difficulties entering new markets and general economic conditions such as
inflation, interest rates and credit availability. The company makes these
statements as of the date of this disclosure, and undertakes no obligation to
update them.
