Parker Hannifin Corp. has entered into a definitive agreement to acquire Lord Corp. for about $3.68bn (€3.3bn) in cash.
The transaction has been approved by each company's board of directors and is subject to customary closing conditions, which includes receiving regulatory approvals.
Once complete, Parker said Lord will be combined with its Engineered Materials Group.
"This strategic transaction will reinforce our stated objective to invest in attractive margin, growth businesses—such as engineered materials,” Tom Williams, Parker chairman and CEO, said in a 29 April statement.
Lord, he said, will “significantly expand” the company’s materials science capabilities with complementary products and better position Parker to serve customers in growth industries and capitalize on emerging trends.
Headquartered in Cary, North Carolina, Lord is a privately-held company founded in 1924 that offers a variety of adhesives, coatings, specialty materials, vibration and motion control technologies.
The firm reported 2018 sales of about $1.1bn (€980,000) with about 3,100 employees throughout 17 manufacturing and 15 research and development facilities globally.
Lord has significantly expanded its operations in the last year to capitalise on e-mobility trends within the automotive industry.
In May 2018, the firm disclosed plans to invest $80m (€71m) to expand and upgrade operations at its plant in Saegertown.
Most recently, the firm began construction in March on an expansion to its Hueckelhoven, Germany, facility.
Parker said Lord will strengthen its business by expanding its Engineered Materials Business and bringing strong brands.
Lord also will strengthen Parker's offering of complementary products in core markets like aerospace, defence, automotive and industrial.
Parker said Lord's products will offer it enhanced opportunities to capitalise on emerging electrification and lightweighting trends.
"With complementary business segments, coming together with Parker enables Lord to carry out our grander vision," Ed Auslander, CEO and president of Lord, said in a statement.
The acquisition, he added, allows Lord to access to growth, additional markets, applications and new customers.