Motion and control technologies provider Parker Hannifin has signed a definitive agreement to acquire US-based Exotic Metals Forming Company in a $1.725bn cash deal.

The net transaction value is approximately $1.56bn, excluding $170m in tax.

Exotic Metals designs and manufactures high-temperature, high-pressure air and exhaust management solutions for aircraft and engines.

After completion of the transaction, Exotic Metals will operate as a standalone division within Parker’s Aerospace Group.

Parker Hannifin chairman and CEO Tom Williams said: “This strategic acquisition further reinforces our commitment to investing in high-growth, attractive margin businesses and accelerates our goal of achieving top-quartile financial performance among our diversified industrial peers.

“As a result of the acquisition, we will be better positioned to accelerate growth through increased aftermarket opportunities and expanded content on industry-leading technological.  The acquisition is expected to drive substantial value for Parker’s shareholders.”

The transaction is expected to add $450m in expected annual sales to Parker’s aerospace business. It also highlights the strategic enhancement of the company’s portfolio of high-growth businesses.

The acquisition of Exotic Metals’ products and manufacturing capabilities will also enhance Parker’s aerospace products and solutions.

The acquired company’s complex and demanding aircraft applications such as high-pressure air and exhaust management will be a complementary addition to Parker’s flow control technologies, increasing its offering in the engine segment.

Exotic Metals Forming Company president and CEO Bill Binder said: “Parker provides our business access to additional platforms and opportunities to expand our aftermarket offerings.

“Most importantly, Parker and Exotic both have long, successful histories of providing high-quality solutions to the aerospace industry, a genuine focus on maintaining deep and lasting customer relationships and fostering an environment of technical innovation and entrepreneurial spirit among our team members.”

The transaction is subject to customary closing conditions, including acknowledgment of applicable regulatory approvals, and expected to be completed within the next two to three months.