Tyco Flow and Pentair Inc in $7.7-bn all stock merger

29 Mar 2012

Tyco International, the $17-billion diversified giant yesterday said that it would spin off and merge its flow control business with Pentair Inc to create a $7.7-billion global flow and filtration products company.

Under the tax-free all stock merger, which values Tyco Flow at approximately $4.9 billion, including assumed net debt and minority interest, Tyco shareholders will own approximately 52.5 per cent of the combined company and Pentair shareholders will own around 47.5 per cent.

The combination will bring together complementary leaders in water and fluid solutions, valves and controls, and equipment protection products to create a premier industrial company, with estimated 2012 revenues of $7.7 billion.

Pentair is a global, diversified industrial company headquartered in Minneapolis, Minnesota. Pentair Water and Fluid Solutions is a leading provider of innovative water and fluid processing products and solutions used in a wide range of applications.

Its Technical Products division provides products that enclose and protect some of the world's most sensitive electronics and electrical equipment.

With 2011 revenues of $3.5 billion, Pentair employs over 15,000 people worldwide.