Emerson has announced it has signed an agreement to purchase the valves and controls business of Pentair for US$3.15 billion. The complementary acquisition establishes Emerson's 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,” said Chairman and Chief Executive Officer David N. Farr. “By adding Pentair’s valves and 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 and controls business has nearly 7500 employees around the world. The business has a large global installed base in chemical, petrochemical, oil and gas, power, mining and other process industries. With product brands like Anderson-Greenwood, Crosby, Vanessa, Keystone and Biffi, Pentair Valves & Controls has been a global leader in providing valve solutions for customers.
“The Pentair valves and 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.
Adapted from press release by Francesca Brindle
Read the article online at: https://www.worldpipelines.com/business-news/19082016/emerson-agrees-to-acquire-valves-controls-business-pentair-3945/