Parker-Hannifin Corporation’s (PH - Free Report) automotive air conditioning business is now with ContiTech AG of Hanover, Germany. The air conditioning business segregated from Parker’s Mobile Climate Systems Division to join ContiTech. However, the terms of the deal are still undisclosed.
Parker generates approximately $140 million revenue from the sale of hose and tube assemblies, accumulators, receiver dryers and oil coolant assemblies for the passenger car and light truck markets. All these products are manufactured by Parker’s automotive air conditioning business which employs about 1,000 employees. However, Parker's air conditioning application division’s products or hose products in the heavy truck, agricultural, and construction equipment end markets are excluded from this deal.
ContiTech AG is a renowned supplier of technical elastomer products in the non-tire rubber sector and a specialist in rubber technology in the non-tire rubber sector. Functional parts, components and systems for the automotive industry and other important industries are produced by ContiTech. With this divesture Parker will be able to better focus on its existing business and products.
Parker-Hannifin Corporation is a leading worldwide full-line diversified manufacturer of motion and control technologies and systems, including fluid power systems, electromechanical controls and related components. In addition to motion and control products, the company is also a leading worldwide producer of fluid purification, fluid and fuel control, process instrumentation, air conditioning, refrigeration, electromagnetic shielding and thermal management products and systems.
We continue to maintain a Neutral rating on Parker-Hannifin for the long term. The company has a Zacks #3 Rank (Hold recommendation) over the next one-to-three months.