9/14/2015 1:28:00 AM
HEADLINES
Pentair PLC agreed to acquire fasteners and electrical equipment manufacturer ERICO Global Company for $1.8 billion cash. The transaction, which values ERICO at approximately twelve times 2015 forecasted EBITDA, is expected to close by the end of the year.
Solon, OH-based ERICO supplies engineered electrical and fastening products for electrical, mechanical and civil applications. The company has 1,200 employees in 30 countries with recognized brands including CADDY fixing, fastening and support products; ERICO electrical grounding, bonding and connectivity products; and LENTON engineered systems.
The addition of ERICO broadens Pentair’s product offering. ERICO will become a key growth platform within Pentair’s Technical Solutions reporting segment.
“The addition of ERICO’s complementary business will expand our presence in the commercial and industrial sectors,” said Pentair CEO Randall Hogan.
ENRICO chairman Bill Roj added: “The merger with Pentair…will result in tremendous global opportunities to expand sales and better serve the companies’ shared industries.”
Worsley, England-based Pentair manufactures industrial pumps, valves, water and filtration equipment, as well as electrical enclosures and thermal heating and cooling systems for factories and for products transported by rail. The company reported 2014 revenues of $7 billion and employs 30,000 people. Web: pentair.com
Founded in 1903 as the Electric Railway Improvement Company, ERICO was created to supply power bonds, signal bonds and related welding equipment to railroads, mining and street railway industries. The company has operations in 30 countries. Web: erico.com
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