Donaldson Secures Strategic Acquisition of Facet for $820 Million

Donaldson Company, Inc. (DCI), a global leader in filtration and replacement parts manufacturing, has finalized its acquisition of Filtration Group’s Facet business unit in an all-cash transaction valued at approximately $820 million. This strategic move represents a significant expansion into specialized filtration markets, with the deal structured at 20 times the anticipated 2025 EBITDA, or 16.6 times when accounting for projected tax benefits and operational synergies. The acquisition will be financed through a combination of existing capital reserves and newly arranged debt facilities.

Facet’s Market Position in Advanced Filtration

Facet brings established expertise in fuel and fluid filtration solutions, with particular strength in aerospace and defense applications. The company also serves the power generation sector and maintains a commanding position as a pioneering force in jet fuel filtration technology. Its products are integrated throughout the complete fuel supply chain—from refinery operations through final fueling stations—addressing critical quality and safety requirements across multiple stages.

Financial Profile and Geographic Reach

The Facet business unit generated approximately $108 million in calendar year 2025 sales, with substantial contributions from North America (57% of total) and European markets (26%). Operating across multiple locations in both the United States and Europe, Facet maintains a workforce of 236 employees dedicated to maintaining product quality and customer service standards. This geographic diversification provides Donaldson with established distribution channels and customer relationships across major industrial regions.

Transaction Valuation Framework

The acquisition price of $820 million reflects a premium valuation of 20 times expected 2025 EBITDA, demonstrating Donaldson’s confidence in Facet’s market strength. When adjusted to account for anticipated cost synergies and the present value of tax optimization benefits, the effective multiple declines to 16.6 times, indicating potential for meaningful operational improvements and integration efficiencies.

Market Response and Trading Activity

Following the announcement, DCI shares experienced modest early trading pressure, with the stock declining 0.48% to $101.44 during pre-market sessions on the New York Stock Exchange. This initial pullback reflects typical market behavior as investors digest the capital requirements and evaluate potential strategic benefits from the Facet integration into Donaldson’s broader portfolio.