Pentair has entered into an agreement with ERICO Global Company whereby Pentair will acquire ERICO for USD 1.8B 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, is expected to add greater than USD 0.40 to 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 global manufacturer and marketer of engineered electrical and fastening products for electrical, mechanical and civil applications. ERICO has 1,200 employees in 30 countries with recognised 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 part of Pentair’s Technical Solutions reporting segment.
