The Parker Hannifin oils business operates under the Wynns brand name. It employs 76 people and had revenues of Euro 22.6 million (U.S. $26.7 million) during its 2002-2003 fiscal year. Fuchs, of Mannheim, Germany, called the acquisition strategically important, saying it will enhance its position in the global metalworking fluids market.

The deal must be approved by French and German antitrust authorities. Fuchs did not specifically disclose the price but said it plans a stock offering of more than Euro 20 million in stock to finance it.

Parker Hannifin, which is based in Cleveland, manufactures motion and control technologies and systems for commercial, mobile, industrial and aerospace markets.

Fuchs reported Nov. 14 that sales revenues through Sept. 30 were up 3.5 percent, as measured by local currencies, but the rising exchange value of the Euro caused net revenues to drop 3.2 percent after currency exchange to Euro 785 million (U.S. $ 926 million).

Costs dropped more than sales revenues however, and combined with lower financing costs, a lower tax rate and sales of real estate and low-profit activities, yielded a net profit of Euro 22.7 million. Net profit for the first three quarters of 2002 was Euro 19 million.

Fuchs cited strong growth for its unit covering Asia-Pacific and Africa, which now accounts for 16.4 percent of total sales, up from 13.7 percent in the same period a year ago.

Management said it was pleased with results given that worldwide lubricant demand is down 1.2 percent through the first nine months of this year. Demand was actually off by 2.3 percent during the first half of the year, according to company estimates, but has since picked up, led by a rebound in the United States. U.S. demand was more than 10 percent off the pace of 2002 for the first six months of this year, but was up 5 percent for July and August.

Fuchs said it expects the rebound in the global market to solidify next year, leading to a moderate increase in demand for 2004.