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Pentair signs $1.8bln deal to acquire Erico

Pentair has entered into an agreement to acquire Erico Global for $1.8 billion (€1.6 billion) in cash, including the repayment of Erico debt.

The transaction values Erico at approximately 12 times 2015 forecasted EBITDA.

The transaction – anticipated to be completed in 2015 and subject to customary closing conditions and necessary regulatory approvals – is expected to add greater than $0.40 to 2016 adjusted earnings per share.

Pentair plans to fund the transaction with a combination of cash and investment grade financing.

Based in Ohio, US, Erico is a global manufacturer and marketer of engineered electrical and fastening products for electrical, mechanical and civil applications.

Erico has 1,200 employees in 30 countries with recognised brands including Caddy fixing, fastening and support products; Erico electrical grounding, bonding and connectivity products; and Lenton engineered systems.

Pentair says Erico will become a key growth platform within Pentair's Technical Solutions reporting segment.