Century-old fastener manufacturer ERICO Global Co., Solon, Ohio, has agreed to be acquired by U.K. industrial specialist Pentair plc, Manchester, U.K., for $1.8 billion in cash including repayment of ERICO debt. ERICO joins well-known brands including Hoffmann and Schroff enclosures and Raychem heat tracing equipment as part of Pentair Technical Solutions.
The transaction values ERICO at approximately twelve times 2015 forecasted earnings (EBITDA). Pentair plans to fund the transaction with a combination of cash and investment-grade financing.
ERICO was founded in 1903 as the Electric Railway Improvement Company as grown into a global manufacturer and marketer of engineered electrical and fastening products for electrical, mechanical and civil applications. The company has 1,200 employees in 30 countries with recognized brands including Caddy Fasteners among a range of fixing, fastening and support products, ERICO electrical grounding, bonding and connectivity products and Lenton engineered systems.
In a release, Pentair said the addition of ERICO will strengthen its business by broadening its product offering and enabling the combined company to provide more global solutions to its end users. ERICO will become a key growth platform within Pentair's Technical Solutions reporting segment.