SK Capital Partners, a New York-based private investment firm focused on the specialty materials, ingredients, and life sciences sectors, today announced it has signed a definitive agreement to acquire the North America Composites & Fuel Containment (“CFC”) Division of Parker Hannifin Corporation.

Parker Hannifin’s CFC Division is a leading provider of engineered carbon fiber composite components and fuel containment solutions for the defense and commercial aerospace markets. The business generates annual sales of approximately $350 million, operates six manufacturing locations across North America, and employs approximately 1,700 people.

Jared Kramer, a Principal at SK Capital, said, “CFC has a rich heritage in providing differentiated material science solutions for leading customers across the aerospace and defense sector. Our firm is privileged to be partnering with CFC’s team to continue delivering excellence for its customers and their mission-critical applications.”

Jack Norris, a Managing Director at SK Capital, added, “SK Capital has a long track record of carving out non-core businesses of larger companies and establishing them as thriving, independent companies. We are highly enthusiastic about the acquisition of Parker’s CFC Division and believe it represents a great opportunity to implement our transformational growth strategy.”

SK Capital’s portfolio includes a number of companies that operate in the aerospace and defense value chain, including Luxium Solutions, a producer of specialty materials and systems for photonics applications. As part of its acquisition of CFC, SK Capital worked closely with aerospace and defense industry executive Larry Resnick, who will remain involved following the close of the acquisition as a member of the business’ Board of Directors.

The transaction is expected to close in the fourth quarter of 2024. Latham & Watkins LLP acted as legal counsel to SK Capital. J.P. Morgan Securities LLC is serving as financial advisor to SK Capital and committed debt financing was provided by direct lending funds and accounts managed by HPS Investment Partners, LLC. Lazard is serving as exclusive financial advisor, and Jones Day acted as legal counsel, to Parker Hannifin.