Donaldson Closes In on Facet Filtration With $820 Million Acquisition

Filtration solutions provider Donaldson Company has moved to expand its aerospace and defense capabilities through a significant all-cash acquisition. The company agreed to purchase Facet Filtration, a specialized division of Filtration Group, for approximately $820 million, marking a strategic entry into the high-performance fuel and fluid filtration space. The transaction, valued at roughly 20 times calendar year 2025 EBITDA, reflects the premium market position commanded by this specialized player in a critical industry segment.

Facet’s Dominant Position in Aviation Fuel Filtration

The acquisition brings Facet, a recognized leader in jet fuel filtration technology, under the Donaldson umbrella. Operating with 236 employees distributed across the United States and Europe, Facet generated $108 million in calendar year 2025 sales, with North America accounting for 57% and Europe contributing 26% of revenues. The company’s specialized filtration solutions serve critical applications across the aerospace and defense sectors, power generation, and related industries. What distinguishes Facet in the marketplace is its pioneering role in jet fuel filtration, where its products are deployed across multiple stages of the fuel supply chain—from refinery operations through to the final fueling point for aircraft.

Strategic Rationale and Synergy Potential

The valuation, which equals 16.6 times EBITDA when adjusted for present value tax benefits and anticipated cost synergies, underscores the value Donaldson places on integrating Facet’s advanced filtration capabilities. Donaldson plans to finance the transaction through a combination of cash reserves and new debt arrangements, signaling confidence in the acquisition’s strategic merit and the potential for operational efficiency gains. This move allows Donaldson to strengthen its position in the aerospace and defense filtration market, one of the most stringent and high-margin segments within the broader filtration industry.

Market Reaction

In early trading following the announcement, Donaldson’s stock reflected modest selling pressure, with DCI shares quoted at $101.44, representing a 0.48% decline on the New York Stock Exchange. Despite the initial market hesitation, the acquisition positions Donaldson to capture significant opportunities within the highly specialized aerospace filtration market where Facet commands established customer relationships and technical expertise.