Emerson to Buy Pentair Valves-and-Controls Unit for $3.15 Billion--Update
August 18 2016 - 6:33PM
Dow Jones News
By Josh Beckerman
Emerson Electric Co. reached a deal to buy Pentair PLC's
valves-and-controls unit for $3.15 billion, part of a strategy to
expand its automation offerings.
The Schaffhausen, Switzerland, business has nearly 7,500
employees and serves sectors including chemicals, energy, power and
mining. Its brands include Anderson-Greenwood, Crosby and Vanessa.
Pentair said revenue for the unit was $1.8 billion in 2015.
The Wall Street Journal reported in June that Pentair was
working with Citigroup Inc. on a possible sale of the business,
potentially for more than $2 billion. The business was acquired as
part of a $4.5 billion deal with Tyco International Ltd. in
2012.
The deal is expected to close in four to six months.
Shares of the companies were inactive after hours.
In June 2015, Emerson announced a plan to reposition itself,
including the spinoff its network-power business and the potential
sale of part of its industrial-automation group.
In lieu of a spinoff, Emerson said Aug. 2 that it would sell the
network-power unit to investors including Platinum Equity for about
$4 billion. Emerson will retain a subordinated interest in the
business. Emerson also agreed to sell its motors, drives and
electric power generation business to Japan's Nidec Corp. for $1.2
billion.
Pentair said the sale will help it focus on its three remaining
segments: water quality systems, flow and filtration solutions, and
technical solutions.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
August 18, 2016 18:18 ET (22:18 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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