Parker Hannifin provides wheels and brakes for military aircraft, including the CH-53K King Stallion heavy-lift helicopter that Sikorsky is building for the US Marine Corps. (US Marine Corps/Cpl Yuritzy Gomez)
US-based Parker Hannifin Corporation has agreed to sell its Aircraft Wheel & Brake business to US aircraft parts maker Kaman Corporation for USD440 million to address regulatory concerns about its proposed acquisition of the United Kingdom's Meggitt.
The 23 May announcement came about a month and a half after Parker disclosed it was in the process of finding a buyer for the business. The European Commission said in April that the divestiture is needed to preserve competition, as Parker and Meggitt are both “leading global suppliers of wheels and brakes for a range of aircraft types, including military helicopters and drones”.
The completion of the divestiture is contingent on Parker obtaining approval to acquire fellow motion and control system provider Meggitt, a Parker spokesperson said. The Meggitt purchase, which Parker plans to complete for GBP6.3 billion (USD7.9 billion) in the third quarter of 2022, is under review by UK Secretary of State for Business, Energy, and Industrial Strategy Kwasi Kwarteng and the US Department of Justice.
Kaman said the Aircraft Wheel & Brake business would increase its “exposure to attractive aerospace and defence end markets with significant growth potential”. The business would become part of Kaman's Engineered Products segment, and its management team would remain in place. Parker selected Kaman's bid following a “competitive auction process”, Kaman's chief financial officer James Coogan told analysts.
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