Pentair Acquires G&F Manufacturing, LLC

Rhea-AI Summary

Pentair (NYSE: PNR) has acquired G&F Manufacturing, a Florida-based manufacturer of pool heat pumps under the Gulfstream brand, for approximately $108 million in cash. The acquisition expands Pentair's pool equipment portfolio in the Southeast United States and is expected to be modestly accretive to earnings in 2025. The strategic move strengthens Pentair's position in sustainable pool solutions, particularly in critical geographical regions where heat pumps are essential offerings.

Positive

• Acquisition expected to be earnings accretive by 2025
• Strategic expansion of product portfolio in Southeast US market
• Cash transaction of $108 million indicates strong financial position
• Enhances presence in sustainable pool equipment segment

Negative

• No immediate earnings contribution until 2025
• Significant cash outlay of $108 million impacts current liquidity

Insights

Financial Analyst

This $108 million acquisition of G&F Manufacturing strategically expands Pentair's footprint in the lucrative Southeast pool market. The deal's focus on heat pumps aligns with growing demand for energy-efficient pool solutions and environmental regulations. While modest earnings accretion is expected in 2025, the acquisition's true value lies in strengthening Pentair's regional market position and expanding its sustainable product portfolio.

The Southeast, particularly Florida, represents a significant pool market with year-round demand. Gulfstream's established presence and service network provide immediate market access. The timing is opportune as property owners increasingly seek energy-efficient alternatives amid rising utility costs. However, the relatively small deal size suggests immediate financial impact on Pentair's $17.9 billion market cap.

Market Research Analyst

The pool equipment market is experiencing a shift toward energy-efficient solutions, making this acquisition particularly well-timed. Heat pumps typically offer 80% lower operating costs compared to traditional gas heaters, presenting significant value proposition in high-usage regions like Florida. The Gulfstream brand acquisition strengthens Pentair's competitive position against key rivals in the Southeast market where heat pump adoption is accelerating.

The deal's structure as an all-cash transaction maintains Pentair's financial flexibility while expanding its sustainable technology portfolio. The modest earnings impact suggests conservative integration planning, though synergies could accelerate as cross-selling opportunities materialize through Pentair's established distribution channels.

LONDON--(BUSINESS WIRE)-- Pentair plc (NYSE: PNR), a leader in helping the world sustainably move, improve and enjoy water, life’s most essential resource, today announced that it has acquired Florida-based G&F Manufacturing, LLC for approximately $108 million in cash at closing, subject to certain adjustments. The acquisition is expected to be modestly accretive to Pentair earnings in 2025. G&F Manufacturing, LLC manufactures and services heat pumps for pools under the Gulfstream brand in the Southeast portion of the United States.

The Gulfstream brand expands Pentair’s pool equipment offerings to customers in Florida and surrounding areas. “Heat pumps are an important offering for customers in critical geographical regions and align with sustainability trends for pool equipment,” said Jerome Pedretti, CEO of Pentair Pool. “This strategic acquisition allows us to enhance our value proposition to our customers and aligns with our commitment to deliver smart, sustainable solutions to help our customers enjoy water and make the most of life’s essential resource.”

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This release contains statements that we believe to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, are forward-looking statements. Without limitation, any statements preceded or followed by or that include the words “targets,” “plans,” “believes,” “expects,” “intends,” “will,” “likely,” “may,” “anticipates,” “estimates,” “projects,” “should,” “would,” “could,” “positioned,” “strategy,” or “future” or words, phrases, or terms of similar substance or the negative thereof are forward-looking statements. All statements made about the expected financial results of the acquired business and the anticipated benefits of the acquisition are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond our control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include our ability to integrate the acquisition successfully; our ability to retain customers and employees of the acquired business; the overall global economic and business conditions impacting our business, including the strength of housing and related markets and conditions relating to international hostilities; supply, demand, logistics, competition and pricing pressures related to and in the markets we serve; the ability to achieve the benefits of our restructuring plans, cost reduction initiatives and Transformation Program; the impact of raw material, logistics and labor costs and other inflation; volatility in currency exchange rates and interest rates; failure of markets to accept new product introductions and enhancements; the ability to successfully identify, finance, complete and integrate acquisitions; risks associated with operating foreign businesses; the impact of seasonality of sales and weather conditions; our ability to comply with laws and regulations; the impact of changes in laws, regulations and administrative policy, including those that limit U.S. tax benefits or impact trade agreements and tariffs; the outcome of litigation and governmental proceedings; and the ability to achieve our long-term strategic operating and environmental, social and governance (“ESG”) goals and targets. Additional information concerning these and other factors is contained in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2023. All forward-looking statements, including all financial forecasts, speak only as of the date of this release. Pentair assumes no obligation, and disclaims any obligation, to update the information contained in this release.

ABOUT PENTAIR PLC

At Pentair, we help the world sustainably move, improve and enjoy water, life’s most essential resource. From our residential and commercial water solutions, to industrial water management and everything in between, Pentair is a core large cap value equity stock focused on smart, sustainable water solutions that help our planet and people thrive.

Pentair had revenue in 2023 of approximately $4.1 billion, and trades under the ticker symbol PNR. With approximately 10,500 global employees serving customers in more than 150 countries, we work to help improve lives and the environment around the world. To learn more, visit www.pentair.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241203609808/en/

Shelly Hubbard

Vice President, Investor Relations

Direct: 612-812-0148

Email: shelly.hubbard@pentair.com

Rebecca Osborn

Sr. Director, External Communications

Direct: 763-656-5589

Email: rebecca.osborn@pentair.com

Source: Pentair plc

FAQ

How much did Pentair (PNR) pay for G&F Manufacturing acquisition?

Pentair paid approximately $108 million in cash for G&F Manufacturing, subject to certain adjustments.

When will the G&F Manufacturing acquisition be accretive to Pentair (PNR) earnings?

The acquisition is expected to be modestly accretive to Pentair's earnings in 2025.

What products does G&F Manufacturing make for Pentair (PNR)?

G&F Manufacturing produces and services heat pumps for pools under the Gulfstream brand in the Southeast United States.

What geographical market does the G&F Manufacturing acquisition expand for Pentair (PNR)?

The acquisition expands Pentair's presence in Florida and surrounding areas in the Southeast United States.