EMERSON has signed an agreement to purchase the Valves & Controls business of Pentair for US$3.15 billion.
Emerson said the strategic acquisition establishes its global presence in control, isolation, pressure relief valves and actuation as part of a larger strategy to build a broader automation portfolio.
“This acquisition delivers on our strategic plan of investing in Automation Solutions and in markets where we have a global leadership position and see significant long-term growth opportunities,” Emerson chairman and CEO, David Farr said.
“By adding Pentair’s Valves & Controls leading technologies and services to our already broad portfolio, we have positioned our businesses to grow while continuing to provide our customers around the world with more complete solutions to their toughest challenges.”
This transaction follows Emerson’s recently announced divestitures of Network Power, Leroy-Somer and Control Techniques for a total of US$5.2 billion as part of the company’s overall strategic portfolio repositioning that was initiated in June 2015.
Headquartered in Schaffhausen, Switzerland, the Pentair Valves & Controls business has nearly 7,500 employees around the world. The business has a large global installed base in oil and gas, chemical, petrochemical, power, mining and other process industries.
The company’s product brands include Anderson-Greenwood, Crosby, Vanessa, Keystone and Biffi, and Pentair Valves & Controls.
“The Pentair Valves & Controls business is a strong fit for us as they share many of the same management principles that have defined success for Emerson over the years such as global customer support, service, best cost sourcing and manufacturing,” said Mike Train, executive vice president and business leader for Emerson Automation Solutions.
“In addition to adding great people and brands to our business, it will allow us to expand our market position and create new opportunities for growth, while also being able to offer our customers the most complete valve solutions portfolio and most extensive service network in the world.”
The acquisition is expected to close in the next four to six months, subject to various regulatory approvals.