NEW YORK (AP) — Pentair is combining its operations with Tyco's flow control business in an all-stock deal worth about $4.53 billion.
The combination unites two of the biggest players in water and fluid products systems.
Pentair's shares climbed 17 percent to $47.17 in premarket trading. Tyco shares rose 1.8 percent to $54.51.
The combined company will retain the Pentair Inc. name. Pentair's CEO will remain in place. Two TycoInternational Ltd. nominees will join the board.
When the deal closes, Tyco shareholders will own about 52.5 percent of the combined company and Pentairshareholders will own about 47.5 percent.
The combined company will be based in Switzerland, where Tyco is currently incorporated, with U.S. offices in Minneapolis, where Pentair is based.
The companies say the deal values Tyco Flow at $4.9 billion, including debt and minority interest.