Pentair plc [NYSE: PNR] has disclosed that it has inked an agreement to purchase Pleatco. Pleatco has earned recognition as a current portfolio firm of Align Capital Partners. Pleatco is a manufacturer of water filtration and clean-air technologies for pool, spa, and industrial air customers.
The proposed purchase of Pleatco offers Pentair an increased range of replacement filter products to be marketed through Pentair’s current Pool and Spa distribution channels as well as through Pleatco’s distribution channels. Furthermore, the buying of Pleatco also grows Pentair’s Industrial Filtration portfolio, with corresponding air filtration products to fulfill the needs of its industrial clients.
The total payment for the deal is nearly $255 million in cash-dependent on certain customary adjustments. Pentair anticipates Pleatco to generate nearly $95 million of annual revenue in 2021. The transaction is anticipated to be profitable in its first full year. The proposed combination will offer Pleatco entry to Pentair’s global distribution and sales channels. It also offers enhanced production capacity and utilization, as well as builds on Pleatco’s track record of product innovation.
Furthermore, the deal is likely to be executed in the fourth quarter dependent on customary closing conditions and necessary regulatory authorization, including termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.