Parker-Hannifin To Buy British Defence Company Meggitt For $8.8. Billion U.S.

U.S. industrial company Parker-Hannifin has agreed to an $8.8 billion U.S. deal to buy British defence and aerospace company Meggitt, the companies announced.

News of the deal sent Meggitt stock soaring more than 56% during early morning trading in Europe. Parker’s offer carries a 70.5% premium to Meggitt’s closing share price last week. Cleveland-based Parker-Hannifin’s shares pulled back slightly in premarket trading stateside.

In the announcement, Parker-Hannifin said it believed the acquisition would enhance its future prospects within aerospace and defense. The deal almost doubles the size of Parker-Hannifin’s Aerospace Systems division.

Parker-Hannifin has also made a series of commitments to the British government as part of the deal, including maintaining Meggitt’s headquarters in England, ensuring a majority of U.K. nationals remain on the company’s board, and keeping the existing headcount in the U.K.