• Aug. 19, 2016, 11:29 AM
    • "The purchase of Pentair’s (PNR -1.6%) Valves & Controls business adds definitive risk to Emerson’s (EMR -3.8%) earnings over the next several years," says Buckingham Research's Joshua Pokrzywinski, downgrading Emerson to Underperform from Neutral, and cutting the price target to $44 from $49.
    • “We believe the strategic overlap is less than ideal."
    • Also downgrading is Credit Suisse, to Neutral from Outperform. The price target remains at $57.
    • “Investors will be rightly cautious of this pitched ‘strategic deal’ at the wrong time of the cycle,” says Stifel's Robert McCarthy as he maintains his Buy rating. "The perception [will be] that Emerson has caught a falling knife in the same general end market where it struggled for the past two plus years.”
    • Previously: Emerson to buy Pentair's valves and controls business for $3.15B (Aug. 18)
    Aug. 19, 2016, 11:29 AM | 9 Comments
  • Aug. 18, 2016, 5:12 PM
    • Emerson Electric (NYSE:EMR) has agreed to buy the Valves & Controls business of Pentair (NYSE:PNR) for $3.15B.
    • Pentair shares are up 1.1% after hours.
    • It's a move in line with Emerson's two core verticals, particularly combined with Emerson's planned multibillion-dollar divestitures of Network Power, Leroy-Somer and Control Techniques.
    • “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,” says CEO David Farr in a statement.
    • The deal's expected to close in four to six months.
    • Conference call link
    Aug. 18, 2016, 5:12 PM | 4 Comments
  • Jul. 22, 2016, 2:31 PM
    • Emerson Electric (EMR +0.2%) has made an offer to acquire pump manufacturer Pentair's (PNR +0.8%) valves and controls business, in a sale could be valued at ~$2B (£1.5B), Reuters reports.
    • Such a deal would free PNR from a unit that CEO Randy Hogan considers a laggard in generating cash, while allowing EMR to expand within its core sectors as it seeks to shed its network power and motors and drives businesses, according to the report.
    Jul. 22, 2016, 2:31 PM | 5 Comments
  • Sep. 21, 2015, 7:13 AM
    • Pentair (NYSE:PNR) has completed the $1.8B acquisition of ERICO Global, a manufacturer of products for electrical, mechanical and civil applications.
    • The transaction is expected to add greater than $0.40 to 2016 adjusted earnings per share and will be funded through a combination of cash and investment grade financing.
    • Previously: Pentair to buy ERICO Global (Aug. 17 2015)
    Sep. 21, 2015, 7:13 AM
  • Aug. 17, 2015, 7:23 AM
    • Pentair (NYSE:PNR) has agreed to acquire ERICO Global for $1.8B in cash (including debt), valuing the company at 12x 2015 forecasted EBITDA.
    • The transaction is expected to add greater than $0.40 to 2016 adjusted earnings per share and will be funded through a combination of cash and investment grade financing.
    Aug. 17, 2015, 7:23 AM | 1 Comment
  • Jun. 9, 2015, 8:55 PM
    • GE's $12B deal to sell its U.S. private-equity lending business to Canada Pension Plan Investment Board is just the beginning of its plan to shed ~$200B of GE Capital assets - and a whole lot of cash to spend on takeovers.
    • Although GE may not make a move right away as it tries to complete the $14B purchase of most of Alstom’s energy business, Bloomberg figures it could amass a $40B war chest for takeovers.
    • Among speculated targets: Pentair (NYSE:PNR), a provider of water pumps and filtration systems; Flowserve (NYSE:FLS), a maker of industrial pumps and valves; electrical components manufacturer Hubbell (HUB.A, HUB.B); life sciences equipment maker Bio-Rad Laboratories (NYSE:BIO); and some of the assets Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI) will divest as part of their merger.
    • Whatever the target, acquisitions likely will be part of GE’s transformation after asset sales and returning capital to shareholders.
    Jun. 9, 2015, 8:55 PM | 26 Comments
  • Mar. 28, 2012, 6:15 AM

    Tyco's (TYC) Flow Control unit will merge with Pentair (PNR) in an all-stock deal that values Tyco Flow at ~$4.9B, including debt. (PR)

    Mar. 28, 2012, 6:15 AM