Pentair Makes Two Acquisitions for $280M Total in One Day
Within the first week of the new year, Golden Valley-based water treatment company Pentair announced not one, but two acquisitions for a combined total of $280 million. Both purchases were revealed on Monday: Pelican Water Systems for $120 million and Aquion for $160 million.
Based just outside of Chicago and founded in 1953, Aquion offers a line of water conditioners, filters, drinking-water purifiers, ozone and ultraviolet disinfection systems, reverse osmosis systems, and acid neutralizers for the residential and commercial water treatment industry.
The DeLand, Florida-based Pelican Water Systems, founded in 2007, specializes in providing residential whole home water treatment systems.
“Aquion is pleased to join Pentair,” said Michael Madsen, Aquion president and CEO. “This will allow Aquion to build on its strengths within an organization that is also committed to creating solutions that make water softer and more economical to use and consume.”
For Pentair, the Aquion acquisition grows its residential water offerings inventory, and Pentair will benefit from Aquion’s dealer network. It also increases access and options for Pentair customers.
“Aquion’s strong portfolio of residential and commercial water systems, combined with Pentair’s technical expertise in water treatment technologies, will position us to expand our scope and customer offerings,” said John L. Stauch, Pentair president and CEO.
About the Pelican Water Systems deal, Stauch said, “Consumers today are increasingly concerned about water quality and want to be empowered to improve the health of their water. Adding Pelican Water Systems’ products to its inventory, said Stauch, allows Pentair to better meet that need.
“Pentair will significantly expand our reach geographically as well as further our aligned missions to ensure the health of the world through cleaner water,” added Pelican Water Systems CEO Iain J. Whyte.
Pelican Water Systems brings 79 employees and Aquion about 170 employees to Pentair’s workforce, which is currently 10,000 employees in 34 countries.
Pentair plans to disclose the anticipated financial impact of Monday’s transactions—and its overall 2019 outlook—when it releases its fourth quarter and full 2018 results January 29. But the company’s 2017 revenue was $2.8 billion. Meanwhile, Pelican Water Systems expects its 2018 annual sales to be about $38 million, while Aquion is anticipating 2018 revenue of $72 million.
Both transactions are expected to close within the first quarter of 2019.