Pentair has entered a definitive agreement to acquire Pleatco, a manufacturer of water filtration technologies for pools and spas.
Pleatco is a current portfolio company of Align Capital Partners, a private equity firm with investment teams in Dallas, Texas and Cleveland, Ohio.
Total consideration for the transaction is approximately $255 million in cash, subject to customary adjustments. Pentair expects Pleatco to generate approximately $95 million of annual revenue in 2021. The transaction is expected to be accretive in its first full year.
The planned acquisition will provide Pentair an expanded range of replacement filter products to be sold through its existing pool and spa distribution channels, along with Pleatco’s channels.
“We are excited to expand our presence in the aftermarket filtration space with an enhanced product offering that advances our objective to offer an effortless pool experience for consumers,” said John Stauch, Pentair president and CEO.
“We look forward to welcoming the Pleatco employees to Pentair and to growing the relationship with Pleatco’s existing customer base,” continued Stauch. “The planned combination will provide Pleatco entry to Pentair’s global distribution and sales channels, and deliver increased production capacity and utilization, as well as build on Pleatco’s track record of product innovation.”
The planned acquisition also includes Pleatco’s air filtration products for industrial customers which will expand Pentair’s portfolio.
The acquisition is anticipated to be completed in the fourth quarter, subject to customary closing conditions and necessary regulatory approvals.