Meggitt Plc shares have skyrocketed by the largest margin in the company’s 170-year history, reaching 800 pence per share. This is a 71% jump from Friday’s closing price. Meggitt’s latest stock surge comes after Parker-Hannifin Corp. decided to acquire Meggitt Plc for 6.3 billion pounds ($8.8 billion) in an effort to strengthen its grip on the aerospace industry.
Since the arrival of Chairman and Chief Executive Officer Tom Williams, Parker-Hannifin has greatly accelerated its buyout activities since being crippled by the coronavirus outbreak. Prior to the pandemic, Cleveland, Ohio-based company completed several major deals, including the $4.3 billion purchase of filtration-products manufacturer Clarcor in 2017 and the 2019 takeover of materials-science firm Lord Corp. for a $3.7 billion price tag.
ParkerHannifin is set to double the size of its aerospace systems business following the acquisition of Meggitt. This purchase will be in time for Parker to take advantage of the ongoing economic rebound of the aviation sector, which was hit by its largest slump due to the pandemic outbreak last year.
As a result of the 71% stock surge, Meggitt’s share value has returned to pre-pandemic levels for the first time since the start of the pandemic.
