The new merged company will be called Pentair and will be led by Randall Hogan, Pentair’s current chairman and CEO.
The transaction values Tyco Flow at approximately US$4.9 billion, including assumed net debt and minority interest. The merged company has estimated pro forma 2012 revenues of US$7.7 billion.
“The addition of Tyco Flow perfectly aligns with Pentair’s growth strategy to expand globally, invest in high growth platforms and leverage the Pentair Integrated Management System to generate strong shareholder returns,” said Hogan. “The new Pentair will be well positioned to benefit from the increased demands on energy, water, infrastructure and industrial process resulting from the growing population and wealth of developing economies.”
When the deal is completed, Tyco shareholders will own approximately 52.5% of the combined company and Pentair shareholders will own the remaining 47.5%.