Pentair to Acquire Clean Process Tech for $705M
Pentair, Inc., on Sunday announced plans to acquire Clean Process Technologies (CPT) from Norit Holding, which is based in the Netherlands.
Under the terms of the agreement, Minneapolis-based Pentair will purchase the company in a deal valued at roughly $705 million.
According to Pentair, CPT offers membrane solutions and clean process technologies for the water and beverage filtration and separation industries. The company uses a proprietary technology to provide purification systems and solutions for desalination, water reuse, and other applications.
CPT employs about 1,200 and operates five facilities that together serve more than 170 distributors from 100 countries. About 45 percent of the company's revenue comes from the Western Europe market, and it has a strong presence in Latin America (accounting for about 10 percent of revenue), the Middle East (about 10 percent), and North America.
According to Pentair, CPT's 2011 revenue will exceed $350 million. Pentair expects to complete the transaction in the second quarter of this year-and the company projects that the acquisition will be accretive to 2012 earnings by between 15 cents and 20 cents per share.
“This acquisition will position Pentair as a leader in the attractive food and beverage sector, where CPT's expertise is highly valued, and will meaningfully strengthen our presence in fast-growth regions, including China, Latin America, and the Middle East,” Pentair Chairman and CEO Randall J. Hogan said in a statement.
Pentair is among Minnesota's 25-largest public companies based on its 2009 revenue, which totaled $2.7 billion. The company reported 2010 revenue of $3 billion.