London — Pentair plc, a leading provider of water treatment and sustainable solutions, has entered into a definitive agreement to acquire Manitowoc Ice, a leading provider of commercial ice makers, for $1.6 billion. When adjusted for approximately $220 million of expected tax benefits, the net transaction value is approximately $1.38 billion. Pentair expects to fund the acquisition with new debt that is anticipated to be investment grade. Subject to customary closing conditions and necessary regulatory approvals, the transaction is expected to close in second quarter 2022
Manitowoc Ice, a portfolio brand of Welbilt, Inc., is a leading designer, manufacturer and distributor of commercial ice machines in the United States and globally. With a global installed base of approximately 1 million units and more than 200 models of commercial ice machines worldwide, Manitowoc Ice has excelled at delivering differentiated product innovation, food safety and sustainability in icemaking. Manitowoc Ice operates facilities in Manitowoc, Wis., Monterrey, Mexico, and Hangzhou, China
“We expect this strategic acquisition to be a game changer for our commercial water solutions platform, establishing a differentiated, total water management offering and expanded network within the foodservice industry,” says John Stauch, Pentair’s president and CEO. “Manitowoc Ice’s industry-leading global positions in an incredibly attractive industry, coupled with its strong track record of profitable growth and culture of innovation and sustainability are expected to further establish Pentair as a leader in a vast and growing industry. At Pentair, we have remained steadfast in our commitment to developing tailored, sustainable solutions that bring water to life through effortless user experiences. We believe Manitowoc Ice’s culture and priorities are highly aligned with this mindset through value-added solutions that are centered on its customers’ needs.”
The acquisition is expected to meaningfully expand Pentair’s water solutions platform by substantially expanding its water management capabilities and enabling a seamless foodservice experience. The addition of Manitowoc Ice will also enable Pentair to offer expanded products for drinking, cooling, cooking and cleaning. With relationships with approximately 80% of the top 10 global restaurant chains and nearly 75% of the top 50 global QSRs, Manitowoc Ice has a large installed base, many of which also rely on Pentair for water quality solutions and services. Further, Manitowoc Ice will provide Pentair with a new entry into a high-margin, high-quality commercial opportunity, expanding Pentair’s overall offering.
Upon closing of this transaction, Pentair plans to have Manitowoc Ice operate within its Water Solutions platform of the Consumer Solutions business segment.
J.P. Morgan Securities LLC is serving as financial advisor to Pentair and Faegre Drinker Biddle & Reath LLP is providing legal counsel.
Pentair, with 2021 revenue of approximately $3.8 billion, has approximately 11,250 global employees serving customers in more than 150 countries. For more information, visit www.Pentair.com.
SOURCE: Pentair