(Adds background on industry, details from statement)
Aug 2 (Reuters) - U.S. industrial firm Parker-Hannifin
said on Monday it will buy Meggitt in a deal
that values its British rival at 6.3 billion pounds ($8.76
billion), expanding its presence in the UK.
Stakeholders in Meggitt, which operates in the aerospace,
defence and energy markets, will get 800 pence in cash for each
share they hold - a 70.5% premium to the company's last closing
price, Parker-Hannifin said.
The takeover, which follows months of media speculation
about a potential deal for the UK midcap company, comes when the
aviation industry is facing a severe downturn as the COVID-19
crisis disrupts travel demand.
In a separate statement, Meggitt's first-half results showed
a 25% drop in core earnings to 116.2 million pounds, but the
company said it was encouraged by the improvement in its civil
aerospace business in the period.
Parker-Hannifin said it will offer legally binding
commitments to the British government on its role in the
country.
The U.S. company will continue to meet its contractual
obligations for goods and services supplied to the government,
keep a majority of UK nationals on Meggitt's board and maintain
the company's UK headquarters here.
On jobs, it said it would maintain Meggitt's R&D, product
engineering and direct manufacturing labour headcount in the UK
at no less than current levels, while increasing by at least 10%
the number of overall apprenticeship opportunities.
Meggitt is the second British defence firm in recent weeks
to become a takeover target for a U.S.-backed company, following
Cobham's bid for Ultra Electronics. Cobham has said it
would offer "appropriate national security undertakings" to the
UK government.
The takeover is expected to add to earnings in the first
full 12 months after the deal closes, Parker-Hannifin added.
Meggitt employs more than 9,000 people in 14 countries in
its three major divisions.
($1 = 0.7190 pounds)
(Reporting by Muvija M in Bengaluru; Editing by Sriraj
Kalluvila and Keith Weir)