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Pentair (NYSE: PNR), a diversified industrial manufacturing company, announced Friday it will acquire Hidro Filtros do Brasil, a manufacturer of industrial and residential water filters in Brazil. Terms of the agreement were not disclosed.

"The acquisition of Hidro Filtros strengthens our position in the water filtration market in Latin America, a key growth region for Pentair," said Alok Maskara, president of Pentair Residential Filtration, a joint venture between Pentair and General Electric (GE).

Hidro Filtros, headquartered in Caxias do Sul, Rio Grande do Sul, employs about 140 people and had sales of more than $12 million during the last 12 months.

After the acquisition, Hidro Filtros will operate under the brand name of Pentair Hidro Filtros, and will be integrated with Pentair Residential Filtration. The deal is expected to close in the beginning of 2011.

Pentair also re-iterated Friday it expects to earn between $1.93 and $1.98 per share on sales of about $3 billion in 2010.

Looking ahead to fiscal 2011, Pentair expects sales to grow to $3.2 billion, while earnings per diluted share are expected to be between $2.20 and $2.35. Analysts polled by Thomson Reuters forecasted a profit of $2.31 on revenue of $3.23 billion for next year.

"We anticipate operating margins to expand over 100 basis points in 2011 compared to the prior year. This reflects volume leverage, price increases and productivity more than offsetting expected material and labor inflation," said CEO of Pentair, Randall J. Hogan.

Disclosure: None

Source: Pentair to Buy Brazilian Water Filter Business; Earnings, Sales Expected to Grow in 2011