SK Capital to Acquire Parker Hannifin’s Composites & Fuel Containment Division

SK Capital Partners, a prominent private equity firm specializing in specialty materials and life sciences, has entered into a definitive agreement to acquire Parker Hannifin Corporation's North American Composites & Fuel Containment division. This strategic acquisition aligns with SK Capital's investment focus and expands its portfolio within the target sectors.

Parker Hannifin’s CFC Division stands out as a premier supplier of advanced carbon fiber composite components and fuel containment solutions, serving both defense and commercial aerospace sectors. With annual revenues of approximately $350 million, the division operates across six strategically located manufacturing facilities in North America. Its workforce of around 1,700 employees supports its extensive operations, positioning it as a significant player in high-performance aerospace and defense markets. The division's focus on innovative materials and solutions underpins its leadership in the industry.

SK Capital's portfolio features several companies within the aerospace and defense value chain, including Luxium Solutions, which specializes in specialty materials and systems for photonics applications. In acquiring Parker Hannifin’s CFC Division, SK Capital collaborated with Larry Resnick, a seasoned executive in the aerospace and defense sectors. Resnick will continue to contribute his expertise as a member of the CFC Division’s Board of Directors post-acquisition, ensuring a smooth transition and ongoing strategic guidance.

The transaction is anticipated to be finalized in the fourth quarter of 2024. SK Capital has enlisted Latham & Watkins LLP to provide legal counsel, while J.P. Morgan Securities LLC is acting as its financial advisor. Committed debt financing for the deal is being supplied by direct lending funds and accounts managed by HPS Investment Partners, LLC. On the other side, Parker Hannifin has engaged Lazard as its exclusive financial advisor and Jones Day as its legal counsel to navigate the transaction. This collaboration ensures thorough expertise and support for both parties throughout the acquisition process.

Jared Kramer, Principal at SK Capital, expressed enthusiasm about partnering with CFC, emphasizing the company's distinguished history in offering advanced material science solutions for the aerospace and defense sectors. He highlighted the firm’s commitment to supporting CFC's continued excellence and its crucial role in mission-critical applications.

Jack Norris, Managing Director at SK Capital, highlighted the firm's success in transforming non-core businesses into thriving independent entities. He expressed strong enthusiasm for acquiring Parker’s CFC Division, viewing it as a prime opportunity to apply SK Capital’s transformational growth strategy and drive significant advancement.

SK Capital is a specialized private investment firm concentrated on the specialty materials, ingredients, and life sciences industries. The firm is dedicated to cultivating robust, environmentally responsible enterprises capable of generating substantial long-term returns. By leveraging its deep industry knowledge and operational expertise, SK Capital seeks to optimize portfolio companies through strategic enhancements, accelerated growth, improved profitability, and risk mitigation.