The Sterling Group Completes the Sale of Velcon Filters, LLC to Parker Hannifin Corporation

    The Sterling Group Completes the Sale of Velcon Filters, LLC to Parker
                             Hannifin Corporation

PR Newswire

HOUSTON, Nov. 1, 2012

HOUSTON, Nov. 1, 2012 /PRNewswire/ --The Sterling Group, a middle market
private equity firm based in Houston, Texas, today announced that they have
finalized the sale of their portfolio company, Velcon Filters, LLC to Parker
Hannifin Corporation (NYSE: PH). Terms of the transaction were not


Headquartered in Colorado Springs, Colorado, Velcon is a niche manufacturer of
filtration systems, including vessels and replacement cartridges, which meet
specific requirements for fluid filtration processes in a variety of domestic
and international end-markets.

When Sterling acquired Velcon in 2009 from the founding family, the business
was the market leader in the aviation filtration market with a stable base of
recurring revenue. Sterling and Velcon together have made three strategic
acquisitions over the past three years, expanding Velcon's end markets beyond
aviation into both upstream and downstream oil and gas filtration, as well as
other process applications, and diversifying Velcon's geographical footprint
into Europe, the Middle East, Asia and Africa. "Sterling partnered with the
Taylor family to capitalize on Velcon's market leading position in jet fuel
filtration, and together we have built a global and diversified industrial
fluid filtration company," said Greg Elliott, Partner at The Sterling Group.
Under Sterling's ownership, Velcon has more than doubled in size.

The combination with Parker's filtration business is expected to further
solidify Velcon's position as the highest standard in the filtration industry.
"This acquisition brings us a leadership position in aviation and industrial
fuel filtration, particularly for aviation fuel which requires specialist
expertise and certifications," said Peter Popoff, President of the Filtration
Group at Parker. "We are excited about the opportunities to combine our
strengths and extend our solutions to more customers, markets and

During its 30 year history, The Sterling Group has partnered with 13 different
family businesses, bringing its operating expertise and a commitment to
partnering with management to improve North American based industrial
businesses. The Sterling Group was advised by Robert W. Baird & Co. and
Willkie Farr & Gallagher.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that
targets controlling interests in basic manufacturing, distribution and
industrial services companies. Typical enterprise values of these companies
range from $100 million to $500 million. Sterling has sponsored the buyout of
42 platform companies and numerous add-on acquisitions for a total transaction
value of approximately $9.9 billion. Currently, Sterling has $1.1 billion of
committed capital under management through three funds. Current portfolio
companies include CST Industries, Universal Fiber Systems, Express, B&G Crane,
Saxco International, Stackpole International, Liqui-Box and Dexter Axle.

About Parker Hannifin Corporation

With annual sales exceeding $13 billion in fiscal year 2012, Parker Hannifin
is the world's leading diversified manufacturer of motion and control
technologies and systems, providing precision-engineered solutions for a wide
variety of mobile, industrial and aerospace markets. The company employs
approximately 60,000 people in 48 countries around the world. Parker has
increased its annual dividends paid to shareholders for 56 consecutive fiscal
years, among the top five longest-running dividend-increase records in the S&P
500 index. For more information, visit the company's web site at or its investor information web site at

SOURCE The Sterling Group

Contact: Franny Jones, +1-713-341-5756,
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