Donaldson to Acquire Facet, Expanding Its Leadership in Mission-Critical Fuel and Fluid Filtration Solutions
Donaldson Company, Inc. (NYSE: DCI), a global leader in technology-driven filtration solutions, announced today that it has entered into a definitive agreement to acquire Facet Filtration, a business of Filtration Group, in an all-cash transaction valued at approximately $820 million. The acquisition reflects a multiple of roughly 20.0x calendar year 2025 EBITDA, or 16.6x when adjusted for the present value of expected tax benefits and anticipated cost synergies.
This transaction represents a strategic investment by Donaldson to expand its Industrial Solutions segment, diversifying the Company’s product offerings while strengthening its exposure to high-margin, recurring revenue markets in aerospace, defense, and power generation.
Strategic Rationale and CEO Commentary
Tod Carpenter, Chairman, President, and CEO of Donaldson, highlighted the strategic importance of the acquisition:
“Facet is a valuable, strategic addition to our Industrial Solutions business, increasing our exposure to attractive, durable end markets which require high-performance filtration solutions. This acquisition strengthens and diversifies our core product portfolio with new capabilities in fuel and fluid filtration, including jet fuel filtration, where Facet is a global pioneer.”
Carpenter emphasized the high-quality, recurring nature of Facet’s revenue streams. Approximately 70% of Facet’s sales are driven by regulated replacement part programs, providing the business with a consistent and high-margin revenue base.
“This highly complementary business expands our addressable market and enhances our long-term profitable growth,” Carpenter added. “We look forward to welcoming the Facet team as we work together to deliver enhanced value to both our customers and our shareholders.”
The acquisition reinforces Donaldson’s position as a leading global filtration solutions provider capable of serving critical industrial, aerospace, and defense applications. By integrating Facet’s expertise in fuel and fluid filtration, Donaldson enhances its ability to deliver end-to-end, mission-critical filtration solutions across the fuel supply chain, including refinery, distribution, and aircraft fueling operations.
Facet specializes in mission-critical fuel and fluid filtration systems, serving customers in aerospace, defense, and power generation. The company has established a global reputation for quality, reliability, and innovation, particularly in the jet fuel filtration segment, where it has pioneered technologies used across the entire fuel supply chain.
Headquartered in Tulsa, Oklahoma, Facet employs 236 people across the United States and Europe, with key manufacturing operations located in Oklahoma and Spain. In 2025, Facet generated $108 million in sales, with the majority derived from North America (57%) and Europe (26%), reflecting its strong international presence and diversified customer base.
Facet’s technology portfolio includes filtration systems designed for extreme operating conditions, high-performance engines, and regulated environments. Its products are mission-critical for airlines, military operators, and industrial clients, ensuring reliability, compliance, and safety in operations where fuel and fluid quality is non-negotiable.
Transaction Details and Financing
Donaldson intends to fund the acquisition through a combination of cash on hand and new debt financing, reflecting a disciplined approach to capital allocation. The transaction is subject to customary closing conditions, including regulatory approvals in relevant jurisdictions. Donaldson has indicated that additional information, including a summary presentation, is available on its investor relations site at ir.donaldson.com.
This acquisition is expected to deliver immediate strategic value by broadening Donaldson’s industrial solutions portfolio, providing access to recurring revenue streams, and enabling the company to serve a wider array of mission-critical applications. The transaction is also expected to enhance profitability over the long term through operational synergies and complementary product offerings.
Strategic Benefits for Donaldson
- Expansion into High-Value End Markets
The acquisition of Facet positions Donaldson to capture growing demand in aerospace and defense, where fuel and fluid filtration is essential for operational reliability and compliance. The addition of jet fuel filtration technology enhances Donaldson’s existing capabilities and opens doors to new commercial and military customers. - Diversification and Recurring Revenue
Facet’s business model generates approximately 70% of revenues from regulated replacement parts, which provides predictable, high-margin recurring revenue streams. This complements Donaldson’s broader portfolio and strengthens the resilience of its Industrial Solutions business. - Global Manufacturing and Operational Scale
With production facilities in the United States and Spain, Facet brings international operational capabilities that align with Donaldson’s global footprint. This enables more efficient servicing of North American and European markets while supporting future growth in emerging regions. - Technological Leadership in Filtration
Facet’s proprietary technologies in fuel and fluid filtration, particularly in jet fuel applications, enhance Donaldson’s innovation pipeline. The company’s advanced filtration solutions help airlines, defense operators, and industrial clients maintain reliability, safety, and regulatory compliance in mission-critical environments. - Synergies and Integration Opportunities
Donaldson anticipates cost and operational synergies from the acquisition, including optimized supply chains, shared R&D initiatives, and enhanced manufacturing efficiencies. Combined with Facet’s complementary product offerings, these synergies are expected to create additional value for shareholders.
Market Context and Industry Significance
The global market for fuel and fluid filtration continues to experience growth due to increasing regulatory requirements, aging industrial and aviation fleets, and the need for mission-critical reliability. In aviation, particularly, airlines and military operators rely heavily on filtration systems to protect engines, fuel systems, and critical equipment from contaminants, ensuring safety and uninterrupted operations.
Post-pandemic market dynamics, combined with global supply chain challenges, have further emphasized the importance of high-performance filtration solutions. Facet’s products are critical in mitigating operational risks, maintaining compliance with aviation and industrial standards, and supporting uninterrupted service across fuel supply chains.
By acquiring Facet, Donaldson is well-positioned to capitalize on these industry trends, leveraging both its technological capabilities and global distribution network to meet increasing demand for mission-critical filtration solutions.
Donaldson notes that statements in this release concerning future expectations, forecasts, and strategic plans are forward-looking and subject to risks and uncertainties under the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, projections of sales, revenue, profitability, synergies, and strategic outcomes from the acquisition.
Factors that could affect outcomes include global economic conditions, industry demand fluctuations, supply chain constraints, competitive pressures, technological disruption, regulatory changes, and operational risks. Actual results may differ materially from those projected, and Donaldson undertakes no obligation to update forward-looking statements unless required by law.
Donaldson’s acquisition of Facet represents a major strategic step in expanding the Company’s presence in mission-critical fuel and fluid filtration markets, particularly in aerospace, defense, and power generation. The transaction enhances Donaldson’s technological capabilities, product portfolio, and recurring revenue base, while positioning the Company for long-term growth in high-value, high-performance filtration markets.
With this acquisition, Donaldson reaffirms its commitment to innovation, reliability, and operational excellence, delivering solutions that support the safety, efficiency, and sustainability of critical industrial and aviation operations worldwide.
Key Transaction Highlights at a Glance:
- Purchase Price: ~$820 million all-cash
- Multiple: 20.0x 2025 EBITDA (16.6x adjusted for tax benefits and synergies)
- Revenue: $108 million in 2025
- Employees: 236 globally
- Manufacturing Locations: Oklahoma, USA; Spain
- Core Markets: Aerospace, defense, power generation
- Strategic Benefits: Expanded product portfolio, recurring revenue, global scale, synergies, technological leadership
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