Pentair, Ltd., recently announced that its shareholders have signed off on the company’s plan to reincorporate in Ireland.
Pentair—which manufactures valves, filtration and pump systems, and water storage tanks, among many other products—technically shifted its headquarters from the Twin Cities to Switzerland following its 2012 megamerger with Tyco International's flow-control division. The company, however, maintains its primary operations in Golden Valley.
Late last year, Pentair announced plans to relocate its place of incorporation from Switzerland to Ireland. CEO Randall Hogan said at the time that the move is meant to create more value for Pentair shareholders, citing Ireland’s “well-developed legal and regulatory system” and “established standards of corporate governance.”
The plan involves merging its existing Swiss parent company into a newly formed Irish company called Pentair, plc., which will become the publicly traded parent company of Pentair and have its tax residency in the United Kingdom.
“Coupled with the stable and internationally competitive tax system in the U.K., we believe it will help us maintain our competitive position in the global marketplace,” Hogan said.
Pentair said this week that it held a special shareholder meeting, and roughly 99 percent of its common shares that were voted at the meeting were cast in favor of the plan. The company said it plans to finalize the reincorporation during the first week of June, pending certain governmental approvals.
A Pentair spokesperson told Twin Cities Business late last year that the change will have very little, if any, effect on its workforce, either in Minnesota or Switzerland.
A recent Businessweek story cited Pentair as one of many publicly traded companies that operate out of the United States but are reincorporating abroad.