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© bakhtiarzein dreamstime.com Business | May 10, 2017

Pentair splits into two

Pentair plans to separate into two independent, publicly-traded companies: standalone Water and Electrical businesses.
"We have built two strong, high-performing businesses with the operating acumen and culture to thrive as two independent companies," said Randall J. Hogan, Pentair Chairman and Chief Executive Officer. "Separating Water and Electrical to create two pure-play companies is the next logical step in the evolution of Pentair and is consistent with our strategy to continually enhance shareholder value. Both companies will have the focus, talent and flexibility to grow profitably, both organically and through acquisitions."

The proposed transaction will create:
  • A global water company ("Water") focused on smart, sustainable water and fluid processing applications. Strategic business groups include Filtration & Process, Flow Technologies and Aquatic & Environmental Systems. The company will retain the Pentair name. Water generated approximately USD 2.8 billion in sales in 2016.
  • A electrical company ("Electrical") focused on improving utilization, lowering costs and maximizing customer uptime. Strategic business groups include Enclosures, Thermal Management and Electrical & Fastening Solutions. The company will be named at a later date. Electrical generated approximately USD 2.1 billion in sales in 2016.
Upon separation, John L. Stauch, Senior Vice President and Chief Financial Officer of Pentair, will become Water's CEO and Karl R. Frykman, the current President of Pentair's Water segment, will become Water's COO. Existing Board member David A. Jones will become Chairman of Water. Beth A. Wozniak, the current President of Pentair's Electrical segment, will become CEO of Electrical.

Randall J. Hogan will retire as Pentair's Chairman and CEO and will serve as Chairman of Electrical.

"We are grateful for Randy's leadership and are excited that we will continue to benefit from his expertise as he assumes the role of Chairman of Electrical," said William T. Monahan, Lead Director of Pentair. "During his 17 years as CEO, the Company has dramatically transformed and delivered more than a six-fold increase in market capitalization."

Pentair expects to complete the separation in the second quarter of 2018, subject to satisfaction of customary conditions, including obtaining final approval from the Pentair Board of Directors, receipt of tax opinions and rulings and effectiveness of appropriate filings with the U.S. Securities and Exchange Commission.

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November 14 2017 8:30 PM V8.8.9-2