Pentair plc (NYSE: PNR), Manchester, UK, has agreed to sell its valves & controls business to Emerson (NYSE: EMR), St. Louis, MO, for $3.2 billion. The transaction is anticipated to be completed late in 2016 or early in 2017.
The valves & controls business, which Pentair acquired in 2012, had sales of $1.8 billion in 2015. Pentair's business will now consist of three segments: water quality systems; flow & filtration solutions; and technical solutions.
"We expect this transaction to provide Pentair the ability to advance our strategy, drive growth, and focus resources on three segments, all of which we believe have attractive growth characteristics," said Pentair CEO Randall J. Hogan.
Meanwhile, the acquisition establishes Emerson's global presence in control, isolation, pressure relief valves and actuation as part of a larger strategy to build a broader automation portfolio.
“This acquisition delivers on our strategic plan of investing in automation solutions and in markets where we have a global leadership position and see significant long-term growth opportunities,” said Emerson CEO David N. Farr.