Pentair to acquire ERICO
Pentair has agreed to acquire ERICO Global Company for $1.8 billion in cash, including the repayment of ERICO debt.
The transaction values ERICO at approximately 12 times 2015 forecasted EBITDA.
Based in Solon, Ohio, ERICO is a global manufacturer and marketer of electrical and fastening products for electrical, mechanical and civil applications. ERICO has 1,200 employees in 30 countries with brands including CADDY fixing, fastening and support products; ERICO electrical grounding, bonding and connectivity products; and LENTON engineered systems.
"The addition of ERICO's complementary business will expand our presence in the commercial and industrial sectors," said Randall J. Hogan, Pentair chairman and CEO. "ERICO has a strong global business and valued brands, making it a perfect fit for Pentair. We have similar cultures and serve similar industries with complementary products, which will create a broader and stronger offering for our end users. Importantly, this transaction reflects Pentair's disciplined acquisition strategy and our ability to identify well-managed companies that complement our product portfolio and strengthen growing areas of our business."
"ERICO is pleased to join Pentair," said Bill Roj, chairman of ERICO. "The merger with Pentair will allow ERICO to build on its strengths within an organization that is a comfortable cultural fit while benefiting from Pentair's advantaged capital structure. The combination will result in tremendous global opportunities to expand sales and better serve the companies' shared industries."
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
