In the latest of a string of divestitures, Parker Hannifin Corp. is selling its North America Composites and Fuel Containment division to SK Capital Partners of New York.
The Mayfield Heights, Ohio-based motion and controls technology company and the private investment firm announced they reached an agreement on the transaction for undisclosed terms.
The division, headquartered in Erlanger, Ky., has annual sales of about $350 million and five additional locations across the U.S. and Mexico, Parker said in announcing the sale. It employs approximately 1,700 people.
Parker said the unit became a major manufacturer of composites, fuel tanks and bladders, following the company's 2022 acquisition of U.K.-based Meggitt plc for 6.3 billion British pounds ($8 billion).
But its position on this portion of that purchase has changed.
"One element of our strategy is assessing whether we are the best owner for certain businesses or whether they could be more successful as part of another organization," said Parker Chairman and CEO Jenny Parmentier in a statement. "The CFC division is a solid business with strong performance and growth potential backed by a great team, whom we wish continued success under the ownership of SK Capital Partners."
For its part, SK Capital said the acquisition fits with its overall business, which is focused on specialty materials, ingredients, and life science products and technologies.
For Parker, the sale is only the latest in a series.
"Parker has also completed the divestiture of several other businesses or product lines over the past 36 months, including: France Electromechanical Solutions division; MicroStrain division; Filter Resources division; the Calzoni product line; the Industrial Profile Systems product line; and the Indego exoskeleton product line," the company noted.
Together, those business lines represented nearly $450 million in annual sales for Parker, it stated.
At its investor meeting in May, Parker said it was following "the Win Strategy," which aims to improve margins while driving growth in trending markets by 2029.
"Parker is a very different company today," Parmentier said during that meeting. "Our portfolio of interconnected technologies strengthens our competitive position, increases resiliency and aligns us with secular trends that are expected to sustain organic sales growth."