Wynn’s International Agrees to Be Sold to Ohio Conglomerate

Wynn’s International Inc., an Orange-based supplier of O-rings, sealing products and specialty chemicals, is being acquired by a Cleveland conglomerate for $438 million in cash.

Parker Hannifin Corp., which makes industrial sealing products and is involved in other manufacturing operations, said Tuesday that it will pay $23 a share, nearly 72% more than the stock’s closing price that day.

Parker Hannifin, which has been on a buying spree, also agreed to assume $59 million in Wynn’s debt. The deal is expected to close in July.

Wynn’s shares closed Tuesday at $13.38, off 25 cents. Parker Hannifin shares closed at $40.50, down 78 cents. Both stocks trade on the New York Stock Exchange. The announcement was made after the close of U.S. markets.

“We think our stock has been undervalued and that this represents a great opportunity for Wynn’s shareholders,” Wynn’s Chief Executive Jim Carroll said.

Carroll added he expects to step down as chief executive after the completion of the deal but has agreed to stay on for two years as a consultant to Parker Hannifin.

Parker Hannifin wanted Wynn’s in large measure for its sealing business, which complements Parker Hannifin’s industrial sealing operations, Carroll said.

However, Wynn’s oil division, which accounts for about one-third of Wynn’s sales, is outside of Parker Hannifin’s core operations. Parker Hannifin has not decided what to do with the division, which employs 532 people in Azusa, Carroll said.

No major layoffs are expected at Wynn’s, which employs 5,000 worldwide. Wynn’s headquarters, which has 13 employees, will probably be closed after the acquisition, said Sy Schlosser, its chief financial officer.

Wynn’s, founded in 1939, last year earned nearly $28 million on sales of $360.3 million. Parker Hannifin earned $310.5 million on sales of $4.96 billion in its fiscal year ended last June.