News 

Pentair plc announced that it has entered into an agreement with ERICO Global Company whereby Pentair will acquire ERICO for $1.8 billion in cash, including the repayment of ERICO debt. The transaction values ERICO at approximately twelve times 2015 forecasted EBITDA.

The transaction, which is anticipated to be completed in 2015 and subject to customary closing conditions and necessary regulatory approvals, is expected to add greater than $0.40 to 2016 adjusted earnings per share. Pentair plans to fund the transaction with a combination of cash and investment grade financing.

Based in Solon, Ohio, ERICO is a leading global manufacturer and marketer of superior engineered electrical and fastening products for electrical, mechanical and civil applications. ERICO 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 will strengthen Pentair's business by broadening its product offering and enabling the combined company to provide more global solutions to its end users. ERICO will become a key growth platform within Pentair's Technical Solutions reporting segment.