Donaldson Secures Strategic Acquisition of Facet Filtration for $820 Million

tx_pending_forever · 2026-02-18T08:02:07+00:00

Donaldson Company has acquired Facet Filtration for $820 million, enhancing its filtration portfolio in aerospace and defense. Facet, a market leader in jet fuel filtration, generated $108 million in sales in 2025. This strategic move aims to create value through operational synergies, although it led to a slight dip in Donaldson's stock price.

tx_pending_forever

2026-02-18 08:02:07

Abstract generation in progress

Donaldson Company, Inc. (DCI), a global leader in filtration systems manufacturing, has finalized its agreement to acquire Facet Filtration from Filtration Group in an all-cash transaction valued at approximately $820 million. This strategic move demonstrates Donaldson’s commitment to strengthening its portfolio in critical filtration markets, particularly within aerospace and defense applications.

Understanding the Facet Business and Market Position

Facet Filtration represents a premier provider of fuel and fluid filtration solutions with specialized expertise in the aerospace and defense sectors, alongside power generation markets. The business holds a distinguished position as a market leader in jet fuel filtration—a critical application where Facet’s advanced products are deployed across multiple points of the fuel supply chain, from refinery operations to the final fueling stage. With 236 employees distributed across North America and Europe, Facet generated $108 million in 2025 calendar-year sales, with 57% derived from North American markets and 26% from European operations.

Transaction Metrics and Strategic Rationale

The acquisition price reflects a valuation of approximately 20 times Facet’s 2025 calendar-year EBITDA. When accounting for anticipated tax benefits and operational cost synergies, the adjusted multiple reaches 16.6 times, demonstrating substantial value creation potential. Donaldson plans to finance the transaction through a combination of existing cash reserves and newly arranged debt financing, highlighting the company’s confidence in the acquisition’s strategic and financial benefits.

Market Response and Trading Activity

Following the announcement, Donaldson’s stock performance reflected initial market caution, with DCI shares quoted at $101.44 on the New York Stock Exchange, representing a decline of 0.48%. This transaction underscores Donaldson’s expansion strategy within specialized filtration markets where Facet maintains competitive advantages and established customer relationships.

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