The 2020 Mid-Year Economic Update_long

Pentair CEO: Company has $1B for Acquisitions in 2015

While capacity is high, Pentair will "remain disciplined" about finding deals that make sense.

The ongoing consolidation story grew more intriguing last week when Pentair CEO Randy Hogan, during an earnings call with analysts to discuss the company's 2014 and 4Q earnings, said it had $1 billion worth of capacity for acquisitions this year.

But, Hogan said, Pentair will spend that money wisely.

"We are going to remain disciplined," Hogan said. "We (have) five questions we always go through which is, how does it fit our strategy? Number two, how do the financials work? Number three, why are we the right buyer? Where is the value? And actually we have more to offer there now with our capital structure and tax structure and our domicile. We actually have more unique opportunities to bring to play there. And then, what's the integration plan?"

Hogan said the company's 2012 merger with Tyco International's flow control business presented a blueprint for the company as it remains on the lookout for attractive opportunities.

"We are not going to rush anything but we certainly up on our toes, on our balls of our feet looking out," Hogan said.

Pentair isn't alone. Other companies have hinted at more acquisitions and recent polls indicate that the market is ripe for additional consolidation. And it's not just companies looking to snatch up competitors, either. David J. Manthey, senior research analyst, industrial distribution services, Robert W. Baird & Co., said during the recent MDM Webcast, 2015 Distribution Industry Outlook, to expect activity from private equity firms, which have $465 billion to spend on M&A.

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events


articles left

This is your last free article

Subscribe to MDM Premium today and get:

  • Unlimited access to
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events



You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.