Donaldson Company, Inc. announced on February 2, 2026 that it has entered into a definitive agreement to acquire the Facet Filtration business from Filtration Group in an all‑cash transaction valued at approximately $820 million. The agreement was signed on January 31, 2026 and will be funded with a mix of cash on hand and new debt financing.
Facet brings advanced fuel and fluid filtration solutions for mission‑critical aerospace, defense and power‑generation customers. Roughly 70 % of Facet’s $108 million in 2025 sales come from recurring, regulated replacement‑part sales that carry high margins, a business model that dovetails with Donaldson’s razor‑to‑blade strategy and provides a predictable, high‑margin revenue stream. The acquisition adds 236 employees across the United States and Europe and expands Donaldson’s Industrial Solutions portfolio into new high‑value markets.
The deal is priced at about 20.0× Facet’s 2025 EBITDA and 16.6× when adjusted for expected tax benefits and cost synergies. The valuation reflects the premium Donaldson is willing to pay for Facet’s recurring revenue base and the expected margin accretion in fiscal 2027. The transaction is projected to be immediately earnings‑accretive, adding roughly $108 million in sales and strengthening Donaldson’s gross and EBITDA margins in its most profitable industrial segment.
The definitive agreement allows the transaction to close in the second half of 2026, with a termination clause that permits either party to exit if the deal is not closed by October 31, 2026, and an option to extend the deadline by up to six months. The combination of cash and debt financing is designed to preserve Donaldson’s balance‑sheet strength while enabling the company to capture the synergies and cost savings expected from the integration of Facet’s operations.
CEO Tod Carpenter said the acquisition “adds a valuable, strategic addition to our Industrial Solutions business, increasing our exposure to attractive, durable end markets that require high‑performance filtration solutions.” He added that the deal “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.” The move is expected to deepen Donaldson’s competitive moat in the filtration oligopoly and accelerate growth in its most profitable industrial segment.
The acquisition positions Donaldson to capture a larger share of the high‑margin, recurring‑revenue filtration market, while leveraging its existing manufacturing and distribution network to realize cost synergies. With the addition of Facet’s expertise, Donaldson will be better positioned to serve mission‑critical customers in aerospace, defense and power generation, sectors that demand reliable, high‑performance filtration solutions and offer long‑term contract relationships. The deal is a strategic step toward expanding Donaldson’s Industrial Solutions portfolio and reinforcing its long‑term growth trajectory.
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