Parker Hannifin will acquire US manufacturer Lord for $3.68 billion in cash in a bid to strengthen its materials science capabilities and aerospace product line.

Privately owned Lord produces adhesives, coatings and other speciality materials, plus vibration- and motion-control technologies.

Lord generates annual sales worth around $1.1 billion and employs 3,100 staff members across 17 manufacturing and 15 research and development plants in international locations, Parker says.

Chief executive Tom Williams states that the acquisition will "significantly expand our materials science capabilities" and improve Parker's position to provide technology for electrification and weight-saving efforts.

The transaction represents a strategy of investing in "attractive margin, growth businesses" and will "meaningfully transform our portfolio", he says.

Parker foresees an opportunity to deliver pre-tax cost savings worth around $125 million by 2023, but notes that this would require cumulative costs to achieve these synergies of about $80 million.

Cross-sale opportunities and global market distribution should provide "incremental revenue synergies over time", the group says.

Noting the complementary activities of the two businesses, Lord chief executive Ed Auslander states that the deal will enable the manufacturer to "carry out our grander vision".

He sees Parker and Lord as "very much aligned when it comes to core values, great business acumen and cultural fit".

Lord will be combined with Parker's Engineered Materials group.

Parker intends to finance the deal through additional debt. The transaction is set to be completed by October, subject to regulatory approval.