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Pentair to buy Aquion, in addition to Pelican
Posted on Tuesday, 08 January 2019 10:32
Shares in Pentair closed up 1.0 per cent yesterday to USD 38.54 prior to the UK-based but mainly US-operated company announcing two separate multi-million-dollar acquisitions that better position the group’s water-treatment services.
One of these transactions involves a USD 160.00 million cash offer for conditioners, filters and drinking-water purifiers group Aquion.
Pentair is expecting the addition of this company, and if affiliated dealer network, will highly complement its value chain in residential water offerings, as well as benefiting customers by increasing access and providing more choices to meet their needs.
Closing of the Aquion acquisition remains subject to regulatory approval and is slated to complete in the first quarter of 2019.
In addition, Pentair, which generated net sales of USD 4.94 billion in fiscal 2017, is due to publish its fourth quarter and full year financial results on 29th January 2019.
The group plans to include an updated earnings outlook for the coming year that will show the impact of the Aquion purchase, as well as its USD 120.00 million agreed acquisition of Pelican Water Systems, also announced earlier today.
John Stauch commented on both deals, saying the addition of the two companies will help expand its scope and customer offerings.
In relation to the Aquion transaction, the chief executive of Pentair added: “This planned acquisition is a significant component of our strategy to be closer to the residential consumer by allowing us to offer turnkey water conditioning solutions through Aquion’s network of affiliated dealers.”
The acquiror operates from 130 locations in 34 countries, with 10,000 employees focused on providing clean water.
Pentair generated net sales of USD 2.22 billion in the nine months to 30th September 2018, an increase of 4.7 per cent on USD 2.12 billion in the corresponding period of 2017.
Net income totalled USD 254.50 million in the opening three quarters of last year; however, this represented a decrease of 45.6 per cent from USD 467.90 million in Q1-3 2017.
There were a number of large deals in the water treatment industry last year, one of which involving Lonza offloading its water care operations to Platinum Equity for USD 630.00 million.
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