Kirkland & Ellis is steering private equity giant KKR and CIRCOR International through a $2.55 billion all-cash deal to sell CIRCOR’s aerospace division to Parker Hannifin. Backed by financial advisors Goldman Sachs and Evercore, the massive divestiture marks KKR’s fourth exit from an industrials investment this year. The carve-out arrives just three years after the buyout firm originally took the broader manufacturing entity private for approximately $1.6 billion, with the transaction scheduled to close in the second half of 2026 pending regulatory approvals.
The acquisition directly targets the commercial aerospace and defense markets by absorbing CIRCOR’s manufacturing pipeline of fluid control, pneumatic, electromechanical, and actuation components. This expansion follows high market demand for motion control products, which recently drove Parker Hannifin to beat quarterly earnings estimates and raise its full-year profit outlook. Following the completion of the sale, KKR will retain ownership of CIRCOR’s remaining naval and industrial divisions with plans to pursue organic growth and additional acquisitions.
A broad-based employee ownership program instituted by CIRCOR in early 2024 will trigger a dividend payout to all employees using a portion of the sale proceeds. Commenting on the corporate transition, CIRCOR CEO Saif Siddiqui stated, "Today's announcement marks an exciting chapter for CIRCOR and reflects the tremendous work and dedication of the entire CIRCOR Aerospace team."
