Pentair combines with Tyco’s flow control business
MINNEAPOLIS — Pentair Inc. has agreed to buy the flow-control instruments company being created from a breakup of Tyco International Ltd. in a deal valuing the subsidiary at $4.53 billion, Bloomberg reported.
Tyco will spin off its flow unit to shareholders and the business will immediately merge with the operations of Pentair.
Tyco shareholders will own 52.5 percent of the combined company’s approximately 214 million shares, with Pentair investors controlling the remainder.
"This is a highly compelling, transformational transaction, bringing together two great companies to create substantial value for shareholders and enhanced growth prospects,” said Randall J. Hogan, Pentair’s chairman and CEO. “The addition of Tyco Flow perfectly aligns with Pentair''s growth strategy to expand globally, invest in high growth platforms and leverage the Pentair Integrated Management System to generate strong shareholder returns. We believe that by combining with Tyco Flow, we can unlock substantial synergies, meaningfully increase our global presence and better serve our customers with a broader offering and expanded capabilities. The new Pentair will be well positioned to benefit from the increased demands on energy, water, infrastructure and industrial process resulting from the growing population and wealth of developing economies."