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Pentair to buy two water companies, one of them being Pelican
Posted on Tuesday, 08 January 2019 10:32
UK-based Pentair has entered into two separate agreements to pick up a couple of US-headquartered water-treatment companies, including Pelican Water Systems for USD 120.00 million in cash, subject to adjustments.
The acquiror is focused on providing a range of smart and sustainable water services to homes, businesses and industries worldwide.
Its agreement to acquire Pelican will strengthen Pentair’s operations by providing new growth opportunities through innovative products and its multi-channel approach that increases consumers options as to where, how and when they can buy their water treatments.
Closing of the deal remains subject to regulatory approvals, among other conditions, and is slated to complete in the first quarter of 2019.
The purchase of Pelican comes ahead of Pentair’s plans to release its fourth quarter and full year financial results on 29th January 2019, a report that will be amended to provide a new 2019 outlook, including the financial impact of this transaction.
In addition, Pentair has also agreed to acquire Aquion, a provider of water conditioners, water filters and drinking-water purifiers, for USD 160.00 million in cash.
This deal is expected to complete in the first quarter and will also have a material impact on the group’s financial outlook for this year.
Pelican, currently controlled by Trivest Partners, claims to be the number one salt-free water softener provider in the US and is expected to generate sales of USD 38.00 million for 2018.
Founded in 2007, the group has 79 employees and produces environmentally friendly water filtration and softening systems, with the majority of products shipped from its Florida-based manufacturing site to all 50 states, as well as locations in Canada and internationally.
Chief executive of Pelican, Iain J Whyte, said: “Pentair will significantly expand our reach geographically as well as further our aligned missions to ensure the health of the world through cleaner water.”
John L Stauch, his counterpart at the buyer, added: “This planned acquisition is one of the key elements of our strategy to expand our core water treatment products in the residential home water business.”
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