Parker Hannifin is buying the hydraulics manufacturer Denison International in a deal worth around $240m. Denison shareholders will receive $24 in cash for each ordinary share under the deal, which is expected to be completed during the first quarter of 2004.

Denison employs about 1,150 people in Europe, Asia and North America and its annual revenues are worth around $180m - 61% of this coming from Europe.

"Denison is among the best performers in the industry," says Parker`s president and chief executive, Don Washkewicz, "with a well-established footprint in international markets for industrial hydraulics, including solid, profitable performance in Europe, and a significant presence in Asia." This will be "additive to our profitability and growth acceleration plans, especially in China".

"We are very excited about the prospects of this combination," adds Lee Banks, president of Parker`s hydraulics group. "Denison has additional systems capabilities we can bolt onto our business, and brings a number of complementary technologies, including vane pumps, hydrostatics and a digitally controlled fan-drive system.

"Strategically and culturally, our organisations are a good fit," Banks continues, "with common principles of conservative management and long-term value creation, reflected in both our balance sheets and our ability to attract and retain talented, hard-working people."

For his part, Denison`s chairman Colin Keith declares that he is "very pleased and excited about joining the Parker organisation. Our companies complement each other in many areas, and the addition of Denison technologies and system capabilities will enhance the already strong contributions of Parker`s product and system offerings to the hydraulics industry."