Parker Hannifin announced May 21 that it has entered into a definitive agreement to acquire the commercial and defense aerospace business of CIRCOR International for $2.55 billion in cash, strengthening Parker’s position in one of its fastest-growing and highest-margin market verticals. The transaction is expected to close in the second half of calendar 2026, pending regulatory approvals and customary closing conditions.

CIRCOR Aerospace designs and manufactures flight-critical motion and flow control products used across commercial aircraft and defense applications, including missile systems and naval platforms. The business operates production facilities in the U.S. and EMEA and is projected to generate approximately $270 million in calendar 2026 sales with adjusted EBITDA margins above 40% before synergies. Parker said the business is expected to deliver double-digit sales growth over the next several years.

Parker said the acquisition will add complementary technologies and capabilities tied to current and next-generation aerospace programs, while also being immediately accretive to sales growth, adjusted EPS, EBITDA margins and cash flow. The company expects to generate cost synergies equal to roughly 10% of CIRCOR Aerospace’s projected 2026 sales.

“This transaction represents our latest strategic investment in longer cycle, higher growth, high margin businesses aligned with our continuous focus on delivering top-quartile financial performance,” Parker Chairman and CEO Jenny Parmentier said in a statement.

The deal further expands Parker’s already sizable Aerospace & Defense exposure, which represented about 35% of the company’s fiscal 2025 sales, according to its latest quarterly investor presentation. Parker’s aerospace business supplies systems and components for major commercial and defense aircraft platforms, including the Boeing 737 and 787, Airbus A320 and A350, Lockheed Martin F-35 and Boeing CH-47 programs.

Parker reported record aerospace segment sales in its fiscal 2026 third quarter ended March 31, with organic growth of 14.2% and order growth of 14%. The company cited continued strength in both commercial OEM and aftermarket demand.

CIRCOR was acquired by KKR in 2023 and taken private in a deal valued at approximately $1.6 billion, including debt. KKR will retain ownership of CIRCOR’s naval and industrial businesses following the aerospace divestiture.