Emerson Electric to buy Pentair Plc's valves, controls business for $3.15 bn
19 August 2016
US multinational company Emerson Electric Co yesterday struck a deal to buy the valves and controls business of UK-based Pentair Plc for $3.15 billion in cash.
St Louis, Missouri-based Emerson had said last year that it plans to spin off its network power division and explore options for other operations, in order to focus on more profitable units.
As part of that plan, this month it agreed to sell Network Power to Platinum Equity for $4 billion and Leroy-Somer and Control Techniques to Japan's Nidec Corp for $1.2 billion (See: Emerson Electric to sell network power unit to Platinum Equity for $4 bn). acquired the Valves & Controls business in 2012 through an all-stock merger with the Flow Control business of Tyco International Ltd.
Post closing, Pentair said that its business will consist of three segments, Water Quality Systems, Flow & Filtration Solutions, and Technical Solutions.
Based in Headquartered in Schaffhausen, Switzerland, Pentair Valves & Controls is a global leader in providing valve solutions for customers business through its product brands like Anderson-Greenwood, Crosby, Vanessa, Keystone and Biffi.
It has a large global installed base in chemical, petrochemical, oil and gas, power, mining and other process industries.
With product brands like Anderson-Greenwood, Crosby, Vanessa, Keystone and Biffi, Pentair Valves & Controls has been a global leader in providing valve solutions for customers.
The unit generates annual revenue of $1.84 billion and employs nearly 7,500 people globally.
''This acquisition delivers on our strategic plan of investing in Automation Solutions and in markets where we have a global leadership position and see significant long-term growth opportunities,'' said David Farr, chairman and CEO of Emerson
''By adding Pentair's Valves & Controls leading technologies and services to our already broad portfolio, we have positioned our businesses to grow while continuing to provide our customers around the world with more complete solutions to their toughest challenges,'' he added.
The acquisition is expected to close in the next four to six months, subject to various regulatory approvals.