Pentair, an industrial manufacturer, Monday said it reached a definitive agreement to acquire 70 percent of the equity of Beijing Jieming Tiandi Environmental Equipment Co., a leading Chinese manufacturer of fiberglass-reinforced plastic pressure tanks, disc filters, valve and systems used in water filtration, softening, and systems applications.
The transaction is subject to receipt of government approval and the closing is expected in the third quarter. Upon completion of this transaction, the companies' joint venture will be named Beijing Pentair Water Jieming Company.
Terms of the deal were not disclosed.
"Through this transaction, Pentair Water gains greater local market knowledge and engineering capabilities for commercial and industrial systems integration initiatives in China, and significantly expands its access to an effective distribution network of more than 150 engineering product companies," said Richard Cathcart, Pentair vice chairman. "Further, we will secure new products including disk filtration systems and low-cost mechanical valves and tanks tailored to the systems integration segment and to China's local market needs."The joint venture will include sales offices in Yixing, Shanghai, Jinan, Guangdong (Dongguan) and Xi'an in China.