Pentair To Buy Erico Global For $1.8 Billion

Pentair PLC announced on Monday an agreement to buy Ohio-based Erico Global Co. for $1.8 billion in cash. Pentair expects the acquisition of the privately-held maker of engineered electrical and fastening products to close in 2015, and add 40 cents a share to 2016 earnings. "The addition of ERICO's complementary business will expand our presence in the commercial and industrial sectors," said Pentair Chief Executive Randall Hogan. "We have similar cultures and serve similar industries with complementary products, which will create a broader and stronger offering for our end users." Shares of U.K.-based Pentair, which were indicated up over 1% in premarket trade, have fallen 7.2% year to date through Friday, while the S&P 500 has gained 1.6%.