Pentair to spend $280 million in deals for two residential water firms

Pentair PLC will buy two small water-treatment companies that cater to the residential market for about $280 million combined, company officials announced Monday.

Pentair, which is based in England but largely managed from Golden Valley, plans to acquire Florida-based Pelican Water Systems for $120 million in cash. Pelican Water generates about $38 million in annual revenue, has 79 employees and makes "whole home" water-treatment systems.

That deal is subject to regulatory approval but is expected to close during the first quarter of this year.

Pentair officials said in a statement that the addition of Pelican was expected to "strengthen Pentair's business by providing new growth opportunities" with innovative products and its multichannel approach to consumer water- treatment solutions.

Pentair also plans to buy the 65-year-old Chicago area firm Aquion for $160 million in cash also during the first quarter.

Aquion has 170 employees, $72 million in annual revenue and offers diverse products for the residential and commercial water-treatment industry. Products include water conditioners, water filters, drinking-water purifiers, ozone and ultraviolet disinfection systems, reverse osmosis systems and acid neutralizers.

In announcing the Aquion deal, Pentair CEO John Stauch said the addition of Aquion's equipment and its dealer network should "highly complement" Pentair's value chain in residential water offerings, pair well with Pentair's technical expertise and expand its product offerings.

"This planned acquisition is a significant component of our strategy to be closer to the residential consumer by allowing us to offer turnkey water conditioning solutions through Aquion's network of affiliated dealers," Stauch said.

Pentair, which generated $4.9 billion in revenue in 2017, will announce its full-year 2018 results on Jan. 29.

Pentair's stock rose 1 percent to close at $38.54 a share on Monday.

Dee DePass • 612-673-7725