Pentair To Buy Erico Global For $1.8 Bln In Cash, Incl. Debt

(RTTNews) - Pentair plc (PNR) said that it agreed to acquire ERICO Global Company for $1.8 billion in cash, including the repayment of ERICO debt. The transaction values ERICO at about twelve times 2015 forecasted EBITDA.

The transaction, which is anticipated to be completed in 2015 and subject to customary closing conditions and necessary regulatory approvals, is expected to add greater than $0.40 to 2016 adjusted earnings per share.

Pentair plans to fund the transaction with a combination of cash and investment grade financing.

Based in Solon, Ohio, ERICO is a manufacturer and marketer of superior engineered electrical and fastening products for electrical, mechanical and civil applications. ERICO has 1,200 employees in 30 countries with recognized brands including CADDY fixing, fastening and support products; ERICO electrical grounding, bonding and connectivity products; and LENTON engineered systems.