Donaldson Company Announces Strategic Acquisition of Facet for $820 Million in All-Cash Transaction

Donaldson Company, Inc. (DCI), a prominent manufacturer of advanced filtration systems, has unveiled plans to acquire Facet Filtration, a leading business under Filtration Group’s portfolio. The transaction carries a valuation of approximately $820 million, fully funded through a cash-based purchase structure supplemented by new debt financing arrangements.

Facet’s Market Position and Specialized Capabilities

Facet represents a strategic addition to Donaldson’s portfolio, offering sophisticated fuel and fluid filtration solutions tailored for demanding industrial applications. The business has established itself as an innovation leader within the jet fuel filtration sector, where its proprietary technologies serve multiple critical stages throughout the aviation fuel supply chain—from refinery processing through final fueling operations. This expertise extends across the aerospace and defense sectors, as well as power generation industries, positioning Facet as a specialized provider in high-performance filtration markets.

Transaction Valuation and Financial Structure

The acquisition price reflects a valuation of approximately 20 times Facet’s projected 2025 EBITDA. When accounting for tax benefit present value and anticipated cost synergies, the multiple adjusts to 16.6 times, demonstrating attractive risk-return characteristics for the acquirer. The $820 million consideration will be primarily financed through available cash reserves combined with incremental debt capacity, providing Donaldson with flexible capital deployment while maintaining financial stability.

Enterprise Scale and Geographic Footprint

Facet currently operates with a workforce of 236 employees distributed across strategic locations in both the United States and European markets. The organization generated approximately $108 million in 2025 calendar year sales, with geographic performance notably concentrated in North America at 57 percent of revenues and Europe representing 26 percent of total sales. This geographic diversification complements Donaldson’s existing operations and opens expansion opportunities in established industrial hubs.

Market Reception and Trading Activity

Following the acquisition announcement, shares of Donaldson Company displayed modest downward pressure in pre-market trading sessions, with DCI declining 0.48 percent to $101.44 per share on the New York Stock Exchange. The market reaction reflects typical investor sentiment surrounding significant capital deployment announcements, as investors assess the strategic rationale and expected returns on this substantial filtration sector consolidation.