UPDATE 2-Parker-Hannifin to acquire KKR-owned Circor for $2.55 billion
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Adds details from the release throughout
May 21 (Reuters) - U.S. investment firm KKR KKR.N said on Thursday it would sell aerospace and defense company Circor to motion control products maker Parker-Hannifin PH.N for $2.55 billion.
Circor, which makes components for commercial and military aircraft, missile systems and naval vessels, is expected to strengthen Parker-Hannifin's presence in high-margin aerospace systems.
The deal is projected to close in the second half of 2026.
Upon closing, all Circor employees will receive a dividend funded by a portion of the sale proceeds, in recognition of the strong performance of its industrial and naval businesses.
KKR said it sees significant potential to further expand both businesses.
KKR, which acquired Circor through its North America Fund XIII in 2023, said it will retain ownership of the company’s naval and industrial businesses, maintaining exposure to strategically important end markets.
The deal is KKR's fourth industrials exit this year.
Parker-Hannifin, which supplies airframes and engine components to Boeing BA.N and Airbus AIR.PA, raised annual profit forecast last month after beating quarterly estimates on strong demand for its aerospace and motion control products.