Department of Justice Challenges Consummated $4.3 Billion Deal

On September 26, 2017, the Department of Justice challenged Parker-Hannifin Corporation’s $4.3 billion already-consummated acquisition of Clarcor Inc. as anticompetitive.  The deal, announced in late 2016, closed on February 28, 2017.

According to the Complaint, filed in the District Court for the District of Delaware, Parker-Hannifin and Clarcor competed head-to-head in the aviation fuel filtration systems and filter elements markets.  They are the only two domestic manufacturers of these products.  The Department of Justice is alleging that the transaction, if left unwound, would allow an unlawful monopoly to exist in these markets, which would lead to higher prices and reduced innovation and other non-price benefit for American businesses and the military.  The Department of Justice is seeking injunctive relief and divestiture of enough assets to replicate Clarcor’s competitive position in the relevant markets.

The Complaint can be found here:

The Department of Justice press release can be found here:

Additional coverage by Law360 can be found here:

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