Madison Industries Agrees to Sell Filtration Group to Parker-Hannifin for $9.25 Billion, Valuing the Innovator at More Than $10 Billion

Filtration Group

Filtration Group makes the world safer, healthier and more productive by providing filtration and separation science solutions that solve mission-critical challenges, serving key growth markets with strong product brands that are often validated and specified. The company’s highly engineered products use proprietary media and leverage strong technical and application knowledge and processes. Approximately 85% of sales are generated in the aftermarket, creating strong recurring revenue streams across multiple product platforms. Filtration Group has a strong organic growth profile and serves high value, performance-critical applications. Filtration Group expects calendar year 2025 sales of $2 billion with adjusted EBITDA margin of 23.5% and employs approximately 7,500 team members serving customers around the world.

The Deal

Filtration Group, an affiliate of Madison Industries, has grown to include premier product brands reflecting the company’s purposeful investment in leading filtration and separation science businesses. The company has experienced tremendous organic momentum in recent years and is strategically aligned with key growth market verticals. Madison Industries entrusted Lincoln given its experience in the filtration market and the depth of its buyer relationships. The cash purchase price of $9.25 billion represents 19.6x Filtration Group’s calendar year 2025 estimated adjusted EBITDA. Filtration Group’s Facet business will not be included in the sale and will remain with Madison Industries. Including the value of Facet, Filtration Group is valued at more than $10 billion.

Our Perspective

Rob Brown, Lincoln International CEO, commented, “Lincoln has had the privilege to be a partner to Madison Industries for nearly three decades, supporting the company’s growth and value-enhancing evolution. We have truly enjoyed partnering with the Filtration Group team to complete this landmark transaction.”

Bobby Reifman, Lincoln International Managing Director and execution lead, commented, “Filtration Group stands out as a true innovator in the filtration industry, and the company’s long-term performance and trajectory has been outstanding. With Parker Hannifin’s investment, Filtration Group is positioned for long-term success. We look forward to following their exciting journey ahead.”

Madison Industries

Madison is one of the largest and most successful privately held companies in the world. Madison builds entrepreneurially driven, branded market leaders that are committed to making the world safer, healthier and more productive by creating innovative solutions that deliver outstanding customer value. The team at Madison is committed to building something truly remarkable that long outlasts them while coaching others to reach their highest potential. Please visit us at www.madison.net.

Parker Hannifin

Parker Hannifin is a Fortune 250 global leader in motion and control technologies. For more than a century the company has been enabling engineering breakthroughs that lead to a better tomorrow. Parker has increased its annual dividend per share paid to shareholders for 69 consecutive fiscal years, among the top five longest-running dividend-increase records in the S&P 500 index. Learn more at www.parker.com or @parkerhannifin.

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