In an otherwise slow week for mergers and acquisitions, one company made the biggest deal in its history.
In its largest acquisition ever, on Dec. 1 longtime Cleveland, Ohio-based manufacturer Parker-Hannifin Corp. announced plans to buy Franklin, Tennessee-based Clarcor Inc. in a $4.3 billion deal in cash and debt.
The deal will double the size of Parker, an international manufacturer of fluid power systems, electromechanical controls and filtration products, such as those used in hospitals, buildings and airplanes.
The deal expands Parker’s industrial air and liquid filtration offerings and will give the manufacturer the opportunity to ramp up its operations in the United States.
“The combination of Parker and Clarcor is highly complementary and offers a great opportunity to combine our strength in international markets and OEMs with Clarcor’s strong U.S. presence and high percentage of recurring sales in the aftermarket,” Tom Williams, chairman and CEO of Parker, said in statement.
For its representation, Parker turned to longtime counsel Jones Day and Thompson Hine.
In 2013, Parker and its Italian subsidiary, Parker ITR Srl, hired Jones Day for representation in an antitrust investigation of marine hose manufacturers in the European Union, Brazil, Japan, Australia and the United States.
For the deal with Clarcor, the Jones Day team was led by mergers and acquisitions partner Patrick “Pat” Leddy. Leddy previously represented Parker in its 2007 acquisition of Norwegian manufacturer Scan Subsea ASA.
The Jones Day team also included partners James Dougherty, Tricia Eschbach-Hall, Robert Graves, Kim Pustulka, Andrew Eisenberg and Tom Hamilton as well as associate Ben Stulberg.
Parker worked with Thompson Hine to advise on antitrust filings. Partner Michael Jahnke and associate Mark Butscha led that work.
Bass, Berry & Sims and Baker & McKenzie represented Clarcor in the deal.
The Bass Berry team was led by corporate partners J. Page Davidson, Kevin Douglas and Andrea Orr, as well as senior associate Taylor Ashley.
In 2014, Bass Berry represented Clarcor in its $325 million acquisition of filtration business Stanadyne Corp., a portfolio company of Kohlberg & Co.
Also on the Bass Berry team were partners Robert L. Brewer, Curtis L. Fisher, J. Andrew Goddard, R. Dale Grimes, Bryan Metcalf, Fritz Richter III, Lucas Ross Smith, James Tate Jr. and Shelley Thomas.
In other M&A news …
Zayo Group Holdings Inc. / Electric Lightwave
In yet another merger in the communications sphere, Colorado-based telecom infrastructure provider Zayo Group announced Nov. 30 plans to purchase its Vancouver-based rival Electric Lightwave, formerly known as Integra Telecom Holdings Inc., for $1.42 billion in cash. With the deal, which is expected to close in the first quarter of 2017, Zayo will acquire Electric Lightwave’s vast fiber network that stretches along the West Coast in such cities as Portland, Seattle, Sacramento and Boise. Zayo currently owns fiber networks in New York, Chicago, London and Paris.
Legal Advisers: Gibson Dunn & Crutcher for Zayo; Latham & Watkins for Electric Lightwave
Allstate Corp. / SquareTrade Holding Co.
Property and casualty insurer Allstate Corp. announced on Nov. 28 its purchase of San Francisco-based SquareTrade Holding Co., provider of extended warranties for electronics and gadgets, for $1.4 billion. SquareTrade’s customers include such major retailers as Amazon.com Inc., Costco Wholesale Corp., Target Corp. and Staples Inc. The deal is expected to close in January 2017.
Legal Advisers: Willkie Farr &Gallagher for Allstate; Ropes & Gray for SquareTrade
Teleflex Inc. / Vascular Solutions Inc.
About 10 months after Vascular Solutions and its founder, Howard Root, were found not guilty on criminal charges related to the promotion of its varicose veins treatment, the Minneapolis-based cardiology device maker announced on Dec. 2 that it will sell itself to medical device maker Telefex Inc. for $1 billion. The deal is expected to close in the first half of 2017.
Legal Advisers: Simpson Thacher & Bartlett for Teleflex; Dorsey & Whitney for Vascular Solutions.
Contact Meghan Tribe at email@example.com. On Twitter: @TribeMeghan.