Pentair PLC has agreed to buy Erico Global Co. for $1.8 billion in cash after coming under pressure from activist investor Trian Fund Management LP to strike deals.
Pentair, the Manchester, U.K.-based industrial manufacturing company said the deal will expand its presence in the commercial and industrial sectors. Erico, based in Solon, Ohio, makes engineered electrical and fastening products under brands including Caddy and Lenton.
“We have similar cultures and serve similar industries with complementary products, which will create a broader and stronger offering for our end users,” Pentair Chief Executive Randall Hogansaid in a news release.
Earlier this year, Trian revealed a seven percent stake in Pentair, which makes pumps and valves used in everything from oil refineries to backyard pools, asking the company to consider buying up rivals in an effort to consolidate the fragmented market for the specialized parts. Pentair said it the deal to close by the end of the year.