GOLDEN VALLEY, Minn., July 19 /PRNewswire-FirstCall/ -- Pentair, Inc.
(NYSE: PNR) announced today that it has concluded its exploration of strategic
alternatives for its wholly owned Tools Group, and that it has signed a
definitive agreement to sell the Group to The Black & Decker Corporation
(NYSE: BDK) of Towson, Maryland, for approximately $775 million. The
transaction is expected to close in 2004, following the completion of
customary regulatory clearance.
"In the 1990s, Pentair was largely defined by its top-performing tools
businesses but, today, the water and enclosures businesses are the driving
forces in our growth and expansion," said Randall J. Hogan, Pentair chairman
and chief executive officer. "The premier brands comprising our Tools Group
continue to represent great value and have performed well against their
competitors. However, the opportunities we see in the expansion of our Water
and Enclosures Groups made the sale of the Tools Group a logical step to build
greater value for Pentair shareholders. The Tools Group is a strong business
that performed well for Pentair, and we believe it will continue to grow and
prosper under the ownership of Black & Decker."
Black & Decker is a global manufacturer and marketer of quality power
tools and accessories, hardware and home improvement products, and
technology-based fastening systems.
Pentair's Tools Group comprises the Porter-Cable, Delta, DeVilbiss Air
Power, Oldham Saw, and FLEX brands, among others. The Group employs
approximately 4,200 people at facilities in North America, Europe and Asia.
"Black & Decker is a recognized leader in the power tool industry and has
proven its ability to grow and sustain strong brand names," Hogan said. "We
are very confident that we are placing our Tools Group in the hands of a team
that can further build the tools businesses to benefit their customers, their
suppliers, and their employees."
Pentair noted that the proceeds from the sale of the Tools Group will be
used to pay down debt associated with Pentair's acquisition of WICOR
Industries, which recently was approved by the Federal Trade Commission and is
expected to be complete at the end of July.
"Going forward, with Pentair's full resources focused on the growth and
expansion of the Water and Enclosures Groups, we will become a much stronger,
more nimble company, Hogan said. "We also expect to be much better positioned
to achieve with greater consistency the growth goals our shareholders expect."
Pentair will report earnings for the second quarter of 2004 on Wednesday,
July 21. A conference call scheduled for 11:00 a.m. CDT that day will be
webcast live via http://www.pentair.com. A link to the conference call is
posted on the site's "Financial Information" page and will be archived at the
same location.
About Pentair, Inc.
Pentair (http://www.pentair.com) is a diversified operating company
headquartered in Minnesota. Its Water Technologies Group is a global leader
in providing innovative products and systems used worldwide in the movement,
treatment, storage and enjoyment of water. Pentair's Enclosures group is a
leader in the global enclosures market, serving industrial and electronic
customers, and its Tools Group markets innovative products under established
brand names to professionals and do-it-yourself users. Pentair's 2003
revenues totaled $2.7 billion. The company employs 13,500 people in more than
50 locations around the world.
Any statements made about the company's anticipated financial results are
forward-looking statements subject to risks and uncertainties such as the
ability to complete the sale of the Tools Group on its expected timetable, the
ability to obtain regulatory approvals of the sale of the Tools Group on
anticipated terms and schedule, continued economic growth; foreign currency
effects; retail and industrial demand; product introductions; and pricing and
other competitive pressures. 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
Pentair: Mark Cain
Tel.: (763) 656-5278
E-mail: mark.cain@pentair.com
SOURCE Pentair, Inc.