Black & Decker Corp., Towson, Md., said it will buy Pentair Inc.’s power tools group for about $775 million.
The Tools Group, with 2003 sales of $1.08 billion and operating profit of $82 million, includes the Porter-Cable, Delta, DeVilbiss Air Power, Oldham Saw and FLEX brands. The transaction is expected to close later this year after regulatory approval.
Pentair, based in Golden Valley, Minn., said the sale would allow it to focus on water filter-related products and electrical enclosures. The company had put the power-tools group on the block in February.
“The businesses we will acquire from Pentair focus on the large and profitable professional power tool market in North America and are an excellent fit with our DEWALT division,” said Nolan D. Archibald, Black & Decker’s chairman and chief executive officer.
The acquisition would add brands to Black & Decker’s portfolio and expand the company’s offerings in product lines where it has relatively lower market share, Archibald said. It also would give Black & Decker a stronger presence throughout its distribution network. The acquisition is expected to double the sales volume of Black & Decker’s North American professional business.