Cleveland Clinic Gets $261M Gift from Sale of LORD Corp.
CLEVELAND – The Cleveland Clinic has received the largest gift in its nearly 100-year history with a $261 million distribution from the Lord Foundation of Ohio.
The distribution was made possible by the sale of LORD Corp., a privately held manufacturing company, to Parker Hannifin Corp. The sale has led to the distribution of more than $1 billion to four institutions nationwide to advance education and research in science and technology. In addition to Cleveland Clinic, the other beneficiaries are Duke University, the Massachusetts Institute of Technology and the University of Southern California. Each will receive approximately $261 million as beneficiaries of gifts of stock from the late Thomas Lord, who led the family-owned company until his death in 1989.
The gift will help Cleveland Clinic further its mission, which was established by its founders in 1921: “To provide better care of the sick, investigation into their problems and further education of those who serve.”
“Cleveland Clinic was founded on the ideal that innovation, research and teaching are integral components of patient care,” said Tom Mihaljevic, M.D., CEO and oresident of Cleveland Clinic. “Mr. Lord’s generous gifts allow us to continue tackling today’s most complex medical challenges, discovering the next breakthroughs and improving lives worldwide.”
Lord’s estate plan included creation of a holding company, the Jura Corp., and the establishment of four foundations, including the Lord Foundation of Ohio, which supports Cleveland Clinic. The Lord Foundation of Ohio, which was an indirect owner of LORD Corporation thanks to a generous gift from Mr. Lord in 1989, has received $261 million in connection with this transaction.
“When developing his estate plan, Tom Lord identified research institutions that shared his vision of continuous learning and innovation,” said Lt. Gen. Frederick McCorkle, USMC (Ret.), chairman of the Jura Corp. board of directors.
Lord’s continued giving supports Cleveland Clinic’s ongoing centennial campaign – The Power of Every One. With a goal of $2 billion, it is the most ambitious philanthropic effort in the clinic’s history. Collectively, the donations provide critical resources for Cleveland Clinic’s physician-scientists to more quickly translate their discoveries into new therapies for patients here and around the world, in addition to supporting the Lerner College of Medicine’s approach of integrating basic science, research and clinical medicine to train not just physicians but physician-scientists.
“Cleveland Clinic cares for patients by discovering tomorrow’s treatments and educating future caregivers,” said James Young, M.D., Cleveland Clinic chief academic officer. “We are extremely grateful for the Lord Foundation of Ohio’s generosity and deep commitment through the years, based on a shared belief that innovation and ingenuity can solve the world’s biggest problems.”
With nearly $300 million in research funding in 2018 and more than 1,500 researchers and support personnel, Cleveland Clinic’s Lerner Research Institute is one of the largest research institutes in the nation. Innovation is built into the structure of Cleveland Clinic, with clinically integrated research teams enabling rapid translation to patient care.
Lord Corp. – which was founded in Erie, Pa., and is now based in Cary, N.C., – grew to sales of more than $1 billion in 2018, and was just purchased by Parker-Hannifin for $3.675 billion, triggering the distribution of the proceeds to the four institutions.
The distribution of more than $1 billion from the four foundations to their respective institutions is believed to be one of the largest single contributions of its kind for science and technology education and research. Cleveland Clinic, Duke, MIT and USC will each determine the use of the funds on their respective campuses.
SOURCE: Cleveland Clinic
Copyright 2024 The Business Journal, Youngstown, Ohio.
