MINNEAPOLIS--(BUSINESS WIRE)--March 6, 2007--Pentair, Inc.
(NYSE:PNR) announced today it has entered into a definitive agreement
to acquire Porous Media, a privately held Minnesota company with
manufacturing operations in both Minnesota and Texas. The acquisition
accelerates the Company's water strategy by strengthening its
filtration and separation technology portfolio and extending its reach
into attractive new markets.
"Porous Media is a compelling strategic fit with our existing
water business," said Randall J. Hogan, chairman and chief executive
officer. "We will leverage Porous Media's filtration and separation
technologies across Pentair's existing Water customers, especially in
markets outside of North America. For example, we believe Porous
Media's oil separation technologies, developed for the petrochemical
market, will effectively address unmet needs for our existing
wastewater reuse and recovery customers globally," he said. "In
addition, we will capture synergies from the acquisition by applying
Pentair's Integrated Management System, especially our supply
management and lean disciplines," Hogan said.
The Company noted that the acquisition also brings strong
technical talent to its Water Group, including engineering, material
science, media development and application capabilities. These
strengths are reflected in Porous Media's current product offerings
and robust new product development pipeline.
Porous Media's well-protected product portfolio includes
high-performance filter media, membranes and related filtration
products and purification systems for liquids, gases and solids for
the general industrial, petrochemical, refining and healthcare market
segments, among others. Within its offering, consumable products
represent more than 80 percent of Porous Media's sales and provide an
established base of recurring revenue, according to Pentair.
Pentair said the transaction is expected to close in the second
quarter of 2007, and that the purchase price is approximately $225
million or, adjusted for tax benefits, 9.7 times 2007 expected EBITDA.
Pentair expects the acquisition to be approximately $0.03 to $0.04
dilutive in fiscal year 2007, with a significant portion of the
dilution attributable to the fair market step-up in inventory. Pentair
also announced it is reducing the top end of its previously announced
2007 earning guidance range of $2.00 to $2.15 to reflect the dilutive
impact of the acquisition.
About Pentair, Inc.
Pentair (www.pentair.com) is a diversified operating company
headquartered in Minnesota. Its Water Group is a global leader in
providing innovative products and systems used worldwide in the
movement, treatment, storage and enjoyment of water. Pentair's
Technical Products Group is a leader in the global enclosures and
thermal management markets, designing and manufacturing thermal
management products and standard, modified, and custom enclosures that
house and protect sensitive electronics and electrical components.
With 2006 revenues of $3.15 billion, Pentair employs approximately
15,000 people worldwide.
Caution Concerning Forward-Looking Statements
Any statements made about the company's anticipated financial
results are forward-looking statements subject to risks and
uncertainties such as continued economic growth, particularly in the
United States, including the strength of residential and commercial
real estate markets; the ability to successfully limit any judgment
arising out of the Horizon litigation; 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, Inc.
Rachael Jarosh, Communications, 763-656-5280
[email protected]
SOURCE: Pentair, Inc.