Parker-Hannifin Corp. has agreed to acquire the aerospace and defense segment of Circor International Inc. for $2.55 billion, the companies announced. The transaction involves the sale of Circor's aerospace division, which is owned by private equity firm KKR & Co.

The deal represents a significant return on KKR's original investment in Circor. The private equity firm had previously acquired the industrial technology company, and the aerospace unit sale would generate substantial proceeds from that initial investment.

Parker-Hannifin, a motion and control technologies manufacturer, would gain Circor's aerospace operations through the acquisition. The aerospace segment being sold focuses on components and systems for commercial and military aircraft applications.

The transaction is subject to customary closing conditions and regulatory approvals. Financial terms indicate the deal values the aerospace division at $2.55 billion, though additional details about the structure and timeline of the acquisition were not immediately disclosed.

Both Parker-Hannifin and Circor operate in the industrial technology sector, with Parker-Hannifin specializing in motion and control systems across various industries including aerospace, while Circor focuses on flow control solutions for aerospace, defense and industrial markets.