Purchase Will Expand Filtration Platform and Accelerate Long-Term Growth And
Profitability of Pentair's Water Technologies Group
GOLDEN VALLEY, Minn., Nov. 18 /PRNewswire-FirstCall/ - Pentair, Inc.
(NYSE: PNR) announced today that it entered into an agreement to acquire water
filtration products manufacturer, Everpure, Inc., of Northbrook, Illinois,
from United States Filter Corporation, a unit of Veolia Environnement (Paris
Bourse: VIE and NYSE: VE), for $215 million. The all-cash transaction, which
Pentair plans to complete at the end of the year, is subject to satisfaction
of customary conditions and applicable regulatory approvals.
Everpure ( http://www.everpure.com ) is a leading global provider of water
filtration products and services for the commercial and consumer sectors.
Everpure products include a wide array of filtration systems and cartridges
for various applications. The company expects net sales in 2003 to exceed
$60.0 million.
"Everpure makes Pentair a global leader in the commercial filtration
segment, which includes the fast-growing foodservice and vending market," said
Pentair Chairman and Chief Executive Officer, Randall J. Hogan. "With a
portfolio of almost 70 filtration technology patents, Everpure is positioned
as the innovator in commercial filtration and has many exclusive relationships
with the world's leading foodservice operators. Combined with our existing
Plymouth Products business, Everpure represents a broad platform for growth in
filtration technologies and services, and a value-adding addition to our
portfolio of water businesses."
Richard J. Cathcart, president and COO of Pentair's Water Technologies
Group, said the Everpure business is ". . . at the bull's eye of our
acquisitions target" and expands significantly Pentair's position in the
commercial water filtration segment.
"Everpure is the brand of choice in foodservice markets," Cathcart said.
"With the largest installed base of filtration equipment, more than 70 percent
of Everpure's revenues come from sales of replacement cartridges. Everpure's
strong brand name, industry leading process technology, rapid product
development capabilities, and broad footprint in North America, Europe, and
Asia, will leverage the strengths of the Water Technologies Group and
accelerate the long-term growth and profitability of our business."
With the completion of the Everpure acquisition, Pentair will have made 11
acquisitions in the Water Technologies arena since 1995. Last year, Pentair
acquired the Plymouth Products water filtration equipment business from
USFilter. In the first year of ownership by Pentair, Plymouth Product's
profits improved 17 percent, while EBIT margins gained 150 basis points.
Revenues in Pentair's Water Technologies Group are expected to exceed
$1 billion in 2003.
According to David D. Harrison, executive vice president and chief
financial officer, Pentair will fund the acquisition from its strong cash
flow.
"In addition, Pentair's debt-to-total-capital ratio will be approximately
40 percent after the acquisition is completed, which is in-line with our
targets and similar to the ratio at the end of 2002," Harrison said.
Veolia Environnement ( http://www.vivendienvironnement.com ) is the
largest environmental services company in the world with more than 295,000
employees in about 100 countries and annual revenues of more than
$31.5 billion.
Pentair ( http://www.pentair.com ) is a Minnesota-based manufacturer whose
core businesses compete in water technology, enclosure and tool markets. The
company employs 12,500 people in more than 53 locations around the world.
Any statements made about the company's anticipated results are forward-
looking statements subject to risks and uncertainties, such as the company's
ability to integrate Everpure, Inc. and to realize expected synergies from the
Everpure acquisition. Forward-looking statements included herein are made as
of the date hereof and the company undertakes no obligation to update publicly
such statements to reflect subsequent events or circumstances. Actual results
could differ materially from anticipated results.
CONTACT: Mark Cain for Pentair, Inc., +1-651-639-5278.
SOURCE Pentair, Inc.