Emerson to Buy Pentair Valves-and-Controls Unit for $3.15 Billion--Update

By Josh Beckerman 

Emerson Electric Co. reached a deal to buy Pentair PLC's valves-and-controls unit for $3.15 billion, part of a strategy to expand its automation offerings.

The Schaffhausen, Switzerland, business has nearly 7,500 employees and serves sectors including chemicals, energy, power and mining. Its brands include Anderson-Greenwood, Crosby and Vanessa. Pentair said revenue for the unit was $1.8 billion in 2015.

The Wall Street Journal reported in June that Pentair was working with Citigroup Inc. on a possible sale of the business, potentially for more than $2 billion. The business was acquired as part of a $4.5 billion deal with Tyco International Ltd. in 2012.

The deal is expected to close in four to six months.

Shares of the companies were inactive after hours.

In June 2015, Emerson announced a plan to reposition itself, including the spinoff its network-power business and the potential sale of part of its industrial-automation group.

In lieu of a spinoff, Emerson said Aug. 2 that it would sell the network-power unit to investors including Platinum Equity for about $4 billion. Emerson will retain a subordinated interest in the business. Emerson also agreed to sell its motors, drives and electric power generation business to Japan's Nidec Corp. for $1.2 billion.

Pentair said the sale will help it focus on its three remaining segments: water quality systems, flow and filtration solutions, and technical solutions.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

August 18, 2016 18:18 ET (22:18 GMT)

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