Pentair, the parent company to Pentair Aquatic Systems, announced earlier this week that it would split into two separate companies – one focusing on water and the other electrical products.
What originally was Pentair’s water division now becomes a separate business. In addition to pool and spa products, the water company will focus on sustainable water and fluid processing applications. It will continue to serve the residential, commercial and industrial markets. According to the company, the water division generated approximately $2.8 billion in sales last year.
The electrical business provides industrial enclosures, fastening systems and thermal management technologies. Pentair’s electrical division made approximately $2.1 billion in sales in 2016.
“We have built two strong, high-performing businesses with the operating acumen and culture to thrive as two independent companies,” said Pentair Chairman and CEO Randall J. Hogan. “Separating Water and Electrical to create two pure-play companies is the next logical step in the evolution of Pentair and is consistent with our strategy to continually enhance shareholder value.”
This change will occur through a tax-free spin-off of the electrical business to Pentair’s shareholders. The water company will retain the Pentair name, while the electrical business will be renamed. Like the previous incarnation of Pentair, both firms will be publicly traded.
So far, Pentair Aquatic Systems has received the message that things will remain business as usual, said spokesperson Elissa Pollack. The only announced changes include staffing at the highest levels. Among the shifts: Hogan will retire, while John L. Stauch senior vice president and CFO of Pentail, will take over as CEO of the water company.
Additionally, Karl R. Frykman, president of Pentair’s water segment, will become the new water firm’s COO. Frykman has a history with the pool and spa industry: He originally joined Pentair’s water division in 1998 as vice president and general manager of National Pool Tile, which Pentair owned at the time. Before that, he held posts with American Products, Anthony Pools and Poolsaver.