Pentair plc has reached an agreement to sell its Valves & Controls business to Emerson at a cash purchase price of US$3.15 billion.
The deal, which is subject to customary closing conditions and necessary regulatory approvals, is expected to be completed by the end of this year or early 2017.
Pentair acquired the Valves & Controls business in 2012 through an all-stock merger with the Flow Control business of Tyco International Ltd. Last year, the business recorded a revenue of US$1.8 billion.
Randall J. Hogan, Pentair Chairman and CEO, said: "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.”
Following the closing of the transaction, Pentair's business will consist of three segments: Water Quality Systems, Flow & Filtration Solutions, and Technical Solutions.
Mr Hogan added: "We remain narrowly diversified, which allows us to prioritise investments and affords us opportunities to grow organically and use our strengthened balance sheet as opportunities arise."
Citi and Goldman, Sachs & Co. are serving as financial advisors to Pentair and Foley & Lardner LLP is providing legal counsel.
Edited from press release by Callum O'Reilly
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