Spin-off set to recast Pentair as a water pure-play

Published May 11th, 2017

Pentair is set to transform itself into a $2.8 billion-a-year water pure-play, having outlined plans earlier this week to spin off its technical solutions business into a separate publicly traded company.

Announced less than two weeks after the completion of the $3.15 billion sale of its valves and controls unit to Emerson, the move is widely interpreted as the next step in a value creation strategy orchestrated by investor activist Trian Partners, which holds a 7.9% stake in the group.

The ‘new’ Pentair will be headed up by current CFO John Stauch, and despite the muted reaction of the company’s shares (which rose by a modest 2.5% on the day of the announcement), the spin-off may end up being regarded as something of a swan song for long-time CEO Randy Hogan, who will step back from his day-to-day role after the deal goes through in the second quarter of 2018.