Pentair to Buy Wicor, Expand Water Business
Pentair, Inc. recently announced it has entered into an agreement to acquire Wicor Industries, a unit of Wisconsin Energy Corp.
The $850 million cash transaction, which Pentair plans to complete in the second or third quarter of 2004, is subject to satisfaction of customary conditions and applicable regulatory approvals.
"The Wicor acquisition will transform Pentair into a diversified company defined largely by a $2 billion Water Technologies business," said Pentair chairman and chief executive officer, Randall J. Hogan. "Not only do we anticipate creating a significant water and wastewater systems business having some $900 million in sales, but we will also be operating a global pool and spa equipment business with revenues of roughly $600 million. We expect our revenues in the filtration and purification space to jump to approximately $500 million."
In 2002, Pentair acquired the Plymouth Products water filtration equipment business from USFilter. In the first year of ownership by Pentair, Plymouth Product's profits improved 17 percent, while EBIT margins gained 150 basis points.
Pentair has made 11 acquisitions in the water technologies arena since 1995, making its Water Technologies Group the company's largest business.
Pentair's Water Technologies Group manufactures water and wastewater pumps for water systems; filters, control valves, tanks, and pressure vessels for filtration systems; and pool and spa equipment, with $1.06 billion in sales in 2003. The group's key brand names include Myers, Hydromatic, Aurora, and Fairbanks Morse pumps; Fleck and Siata water conditioning valves; WellMate and Structural tanks; Plymouth Products, American Plumber, Pentek, and Everpure filtration products.
A manufacturer of water system, filtration, and pool equipment products, Wicor generated sales of approximately $750 million in 2003 and employs 3,500 people in 24 locations worldwide.