GOLDEN VALLEY, Minn. (AP) — Pentair, a leading water treatment company, plans to acquire a Wisconsin manufacturer of commercial ice machines for $1.6 billion.
Pentair, headquartered in London and managed out of Golden Valley, Minnesota, has a definitive agreement to buy Manitowoc Ice, based in Manitowoc, Wisconsin.
"We expect this strategic acquisition to be a game changer for our commercial water solutions platform," John Stauch, Pentair's chief executive, said in a statement Thursday.
Manitowoc Ice is a subsidiary of Wellbit Inc., a Florida-based maker of commercial food-service equipment.
With plants in Wisconsin, Mexico and China, Manitowoc Ice employs 800 people and manufactures about 200 models of commercial ice-making machines used in a variety of food service and industrial settings.
In 2021, Manitowoc Ice had revenue of $308 million with healthy profit margins.
"With the addition of Manitowoc Ice, we expect Pentair will have the opportunity to bring to our customers a total water management solution that optimizes complementary portfolios through a large installed customer base in foodservice," Stauch said.
Pentair will get about $220 million in tax benefits from the deal that will help offset the overall purchase price. The company said it will issue new investment grade debt to help pay for the deal that is expected to close in the second quarter.
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