#United States #Milwaukee #Rehlko #Parker Hannifin #Curtis Instruments

Rehlko's Strategic Move: A $1 Billion Sale to Parker Hannifin

In a significant shift within the energy sector, Rehlko, acclaimed for its leadership in energy resilience, has announced that it will transition the ownership of its Curtis Instruments subsidiary to Parker Hannifin Corporation. This move marks a pivotal moment as the agreement, valued at approximately $1 billion in cash, is expected to finalize by the end of the year 2025.

Background of the Transaction

Rehlko's decision stems from a strategic initiative to sharpen its focus on core enterprise capabilities and amplify its commitment to delivering advanced energy solutions. The company's President and CEO, Brian Melka, expressed pride in Curtis, emphasizing its successful history as an innovation-driven business. He is confident that the integration with Parker Hannifin, a recognized leader in motion and control technologies, will offer Curtis the opportunity to thrive further due to Parker’s scale and technological investments.

Strategic Alignment

This transaction aligns seamlessly with Rehlko's disciplined management of its portfolio. By divesting Curtis, both Rehlko and Parker can concentrate on their independent growth strategies, fostering innovation and increasing customer engagement. Notably, Rehlko's recent acquisition by Platinum Equity in 2024 has steered this strategic direction, prompting the company to evaluate its offerings and capabilities critically.

Jenny Parmentier, Parker’s CEO, noted that this acquisition complements their existing electrification technologies, allowing them to cater to an increasing demand for electric and hybrid solutions. She commended Rehlko and Platinum Equity for being responsible stewards during this transition, anticipating a smooth integration process.

Implications for the Future

Industry experts view this sale as a reflection of the long-term trends shaping electrification in many sectors, highlighting how organizations are adapting to meet evolving market demands. Platinum Equity’s Co-Presidents shared their respect for Curtis's leadership and innovative products, asserting that the sale would enable Rehlko to laser-focus on energy resilience initiatives, further solidifying its market position.

They reaffirmed commitment to collaborating closely through both organic and acquisition-driven growth strategies that help expand Rehlko's presence in the industry, underlining the importance of providing mission-critical power solutions to customers.

Maintaining Commitment to Quality

Despite the transaction, Curtis will continue to operate under the Rehlko umbrella until the deal's completion, aiming to maintain the high-quality service and products that have established its reputation in the market over the past six decades. Current operations will remain uninterrupted, reassuring customers of the continuity in service provisions during this period of transition.

Advisory Teams

On the financial front, BofA Securities, Inc., and Goldman Sachs & Co. LLC are acting as advisors to Rehlko, while Parker is being represented by Guggenheim Securities, LLC in a similar capacity. Both companies have engaged legal expertise to ensure that the deal follows due process and aligns with regulatory requirements.

Conclusion

As this pivotal transition unfolds, the energy landscape will closely monitor the integration of Curtis into Parker Hannifin's operations. The sale is expected to lay the groundwork for enhanced technological advancements and customer solutions across the industry, embracing the ongoing shift toward electrification and robust energy solutions that respond to the demands of modern society.