Donaldson makes $820M deal to buy another filtration business

Donaldson Co. has signed an $820 million deal to buy a fuel and fluid filtration business that mostly serves the aviation and marine industries.

Bloomington-based Donaldson expects the acquisition of Filtration Group’s Facet business to add about $110 million to Donaldson’s annual sales.

“Facet is a valuable, strategic addition to our Industrial Solutions business,” said Tod Carpenter, chief executive of Donaldson.

Founded in 1943, Facet mostly serves the aviation and marine industries in the U.S. and Europe.

Facet also fits with Donaldson’s business model, which is similar to selling razors to sell razor blades. About 70% of Facet’s annual revenue is from consumables that are required to be replaced at scheduled intervals due to regulations.

“This acquisition strengthens and diversifies our core product portfolio with new capabilities in fuel and fluid filtration including jet fuel filtration,” Carpenter said.

Donaldson is a filtration company with 150 locations among its global operations. It provides air, gas, fluid and hydraulic filtration products in three main business segments: Mobile Solutions; Industrial Solutions and Life Sciences.

Facet was part of Madison Industries’ Filtration Group. In November, Madison made a $9.25 billion deal to sell the unit to Parker-Hannifin Corp., but Facet was not included in the acquisition.

Madison Industries is a privately held holding company with dozens of subsidiary companies.

“Facet’s growth over the past several years has been truly remarkable, and we are thrilled to have found the perfect home for Facet’s customers and team members,” said Larry Gies, founder and CEO of Madison Industries, in a news release.

Facet is based in Tulsa, Okla., and has 236 employees in the United States and Europe with manufacturing operations in Oklahoma and Spain.

Donaldson’s share price closed Friday near all time highs at $101.94 a share. Shares were down slightly on Monday after the deal for Facet was announced.