Clarcor Inc Has Entered Into an Agreement to Acquire The Air Filtration Business

Clarcor Inc has entered into an agreement to acquire the air filtration business of General Electric Co's Power and Water division for US$265 million. Headquartered in Overland Park, Kansas and with manufacturing operations in Missouri, the UK and China, the business supplies air filtration systems and filters used in gas turbine applications, as well as industrial air filtration products and membranes. It has more than 700 employees and trailing 12 month annual revenues of approximately US$230 million. Under Clarcor ownership, the business will continue to supply gas turbine air inlet filtration systems and filters to GE under a multi-year supply agreement. "Each element of this business – gas turbine filtration, industrial air filtration, and membranes – is attractive and fits within our core strategies and competencies," said Clarcor chairman, president and CEO Christopher Conway. "Clarcor traditionally has had little presence in the gas turbine business, and we believe this transaction will immediately position Clarcor as a major player in the space and provide a strong platform from which to grow, both with respect to first-fit applications as well as the aftermarket." "The air filtration business has strengthened its operations and improved performance over the past two years to create a world-class filtration business," said Victor Abate, president and CEO of GE Power & Water's Power Generation Products. "In the Power Generation segment, we are focused on our core gas turbine technology, and we have made the strategic decision to simplify the business to better match our core strengths. We are pleased that the transaction with Clarcor will allow air filtration the opportunity to grow and thrive in the filtration industry." The transaction is expected to close by the end of this year.