Pentair PLC has agreed to buy Erico Global Co. for $1.8 billion in cash, including the repayment of debt, after coming under pressure from activist investor Trian Fund Management LP to strike deals.

The Manchester, U.K.-based industrial manufacturing company said the deal will expand its presence in the commercial and industrial sectors. Solon, Ohio-based Erico makes engineered electrical and fastening products under brands including Caddy and Lenton.

Shares of Pentair, down 7% this year, added 1.3% in premarket trading.

"We have similar cultures and serve similar industries with complementary products, which will create a broader and stronger offering for our end users," Pentair Chief Executive Randall Hogan said in a news release.

Earlier this year, Trian revealed a 7% stake in Pentair, which makes pumps and valves used in everything from oil refineries to backyard pools, asking the company to consider buying up rivals in an effort to consolidate the fragmented market for the specialized parts, The Wall Street Journal reported.

Pentair has an advantage over some U.S. rivals because it is based in Ireland and the U.K., giving it a lower corporate tax rate. The desire to decrease taxes has spurred a spate of deals in the past year, as companies look for ways to boost profits in a slowly growing economy.

In recent years, Pentair has been focused on integrating Tyco International PLC's former pump-and-filter maker, which it merged with in 2012. The company exceeded the cost savings it expected to pull out of the combination but has fallen short of the earnings goals it set.

Pentair said it expects the deal for Erico, slated to close by the end of the year, to add more than 40 cents to its adjusted per-share earnings next year.

Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com

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(END) Dow Jones Newswires

August 17, 2015 08:15 ET (12:15 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.
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