Donaldson Company

Started as Donaldson Engineering, a small business built around Frank Donaldson's air intake filter invention (engine air cleaner). Frank Donaldson invented the air intake filter while repairing a tractor in Utah. The business was incorporated in 1915 by Donaldson, his parents and his siblings as Donaldson Company Inc.

In its first decade, Donaldson Company made two important moves; it acquired the Wilcox-Bennet air filter license and introduced the Simplex, a filter that also prevents engine damage. Deere & Company was the company's most important client during the first couple decades. The early 1930s brought additional prosperity when William Lowther joined the company and designed the NS Filter, a tractor performance enhancing filter invented by Frank Donaldson. The 1930’s were a transitional period, beginning with tough economic conditions in the United States which caused business from farmers to fall and subsequently forcing the company to contract in size. This was later followed by the sale of patents to influential investors provided the company with funds and market exposure needed to survive and grow (part of the agreement was that Donaldson Company produce the filters). World War II provided opportunities for the company to expand into aerospace and military hydraulic equipment and device filters. The 1950s were bittersweet. While the company gained market share, grew in size and went public in 1955, it was beset by employee strikes, the exodus of key employees (who started a new company to compete with Donaldson for market share) and IRS charges of hidden back taxes.

In the 1960s subsidiaries were established in Germany, South Africa, Britain, France, Australia and Benelux.

Key dates and events

1915 - Frank Donaldson and his father, W.H.L. Donaldson, found Donaldson Engineering Company to market an air filter that the son has designed

1918 - The business is incorporated as Donaldson Company, Inc

1938 - First production facility abroad (Canada)

1942 - Frank Donaldson died, with his eldest son Frank jr. age 22.

Subsidiaries are grouped based on the products they deal in (engine, industrial, aerospace or pharmaceutical applications), with the two core business segments being Engine Products and Industrial Products.

Products in the Engine Products segment consist of air filtration systems, exhaust and emissions systems, liquid filtration systems including hydraulics, fuel, and lube systems, and replacement filters. The Engine Products segment sells to original equipment manufacturers (OEMs) in the construction, mining, agriculture, aerospace, defense, and truck markets, and to independent distributors, OEM dealer networks, private label accounts, and large equipment fleets.

Products in the Industrial Products segment consist of dust, fume, and mist collectors, compressed air purification systems, air filtration systems for gas turbines, PTFE membrane-based products, and specialized air and gas filtration systems for applications including computer hard disk drives and semiconductor manufacturing. The Industrial Products segment sells to various industrial dealers, distributors, OEMs of gas-fired turbines, and OEMs and end-users requiring clean filtration solutions and replacement filters.

The company delivered revenue of $2.4 billion in fiscal year 2015 (compared to $2.5 billion in fiscal year 2014) through its diversified portfolio of engine and industrial filtration products, with roughly 60% of total sales being generated outside of the US. Donaldson operates a network of approximately 140 sales, manufacturing and distribution locations in 44 countries across the world.