Parker Hannifin said shareholders will receive 800 pence per share in cash, valuing Meggitt's existing issued and to be issued ordinary share capital at approximately £6.3bn ($8.8bn).
The price represents a premium of approximately 70.5% to the closing price of 469.1 pence per Meggitt Share on 30 July 2021, the last business day before this announcement.
Parker Hannifin said it believes the acquisition is "strategically and culturally compelling" for both companies.
The acquisition of Meggitt nearly doubles the size of Parker's aerospace systems segment.
Under the terms of the deal, Meggitt will still be headquartered in the UK, with majority UK national board members.
It will also hold to Meggitt's commitment to commit to reduce net carbon emissions by 50% by 2025 and achieving net zero greenhouse gas emissions by 2050 across the existing Meggitt business.
"During our longstanding presence in the UK we have built great respect for Meggitt, its heritage, and its place in British industry. Our own journey over more than 100 years has taught us the importance of a strong culture and reputation," said Tom Williams, chairman and CEO of Parker.
In Meggitt's interim results it said that it would not be paying an interim dividend due to "ongoing market conditions".
It expects underlying operating profit ahead of 2020 and positive free cash flow.
The company said that defence spending in the UK remained robust and is forecast to be up 6% in 2021, with the outlook for defence spending in the EU also solid. In the US, defence spending is expected to exceed the $2tn mark.
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