Bloomington-based Donaldson Company is writing an $820 million all-cash check for Facet Filtration, a Tulsa maker of fuel and fluid filters that supplies aviation, marine, and power-generation customers. Donaldson says the purchase will plug neatly into its Industrial Solutions lineup and should immediately add about $110 million to annual sales once the business is folded in.
Deal Terms And Rationale
The company unveiled the definitive agreement in a press release, saying it will fund the acquisition with a mix of cash on hand and new debt and that the deal is expected to be both margin- and EPS-accretive by fiscal 2027. The release also pegs the purchase price at roughly 20 times calendar-year 2025 EBITDA, with closing still subject to standard conditions and regulatory sign-offs, according to Business Wire.
About Facet
Facet, founded in 1943 and headquartered in Tulsa, focuses on jet-fuel and other mission-critical fluid filtration and reported about $108 million in calendar 2025 sales. The business has roughly 236 employees across the United States and Europe, runs manufacturing operations in Oklahoma and Spain, and generates close to 70% of its revenue from consumables and regulated replacement parts, the Star Tribune reports.
Why This Came Together
The deal follows Madison Industries’ decision to sell most of Filtration Group to Parker‑Hannifin for $9.25 billion, a transaction that specifically left Facet out and kept the unit with Madison. That carve-out cleared the way for Donaldson to pursue a standalone buy. Madison founder Larry Gies said he was “thrilled to have found the perfect home for Facet’s customers and team members,” according to Filtration Group’s announcement.
Donaldson’s Footprint
Donaldson, founded in 1915 and based near Minneapolis, operates more than 150 locations worldwide and sells air, gas, fluid and hydraulic filtration across its Mobile Solutions, Industrial Solutions and Life Sciences segments, per the company’s investor profile. The company is pitching the Facet acquisition as a way to bulk up in regulated aftermarket consumables that can generate steady, recurring revenue instead of one-and-done equipment sales.
Leadership And Next Steps
In its release, Donaldson quoted CEO Tod Carpenter calling Facet “a valuable, strategic addition to our Industrial Solutions business,” and noted that this will be the largest acquisition in the company’s history once it closes. Carpenter has already announced plans to retire as president and CEO and will stay on as executive chair, while Chief Operating Officer Richard Lewis is set to take over the CEO role in March, according to the company announcement and local reporting.
What’s Next
Donaldson says the transaction still needs customary closing conditions and regulatory reviews, and that a summary presentation and additional materials are available on its investor site. Management has told investors it intends to tuck Facet into the Industrial Solutions business while keeping Facet’s manufacturing footprint and customer support in place during the transition, per materials on Donaldson’s investor site.
Business leaders in Tulsa and Bloomington will be tracking what the handoff means for lead times and technical support in aviation fueling, while analysts are eyeing how much deeper this move could take Donaldson into regulated consumables markets. Early financial coverage has already zeroed in on the strategic fit and potential aftermarket revenue boost, according to reporting by Investing.com.
