Bloomberg News

Pentair to Buy Up to $1 Billion in Stock and Plans Ireland Move

December 10, 2013

Pentair Ltd. (PNR:US), a provider of water and fluid filtration systems, plans to buy as much as $1 billion of its stock through 2016 and move its headquarters to Ireland from Switzerland.

The buyback will leave Pentair with another $2 billion in cash and the ability to finance investment elsewhere or expand the share repurchase program, Chief Executive Officer Randall Hogan said in a statement today. Pentair also reiterated its per-share profit goal of $5 in 2015. That compares with adjusted earnings of $4.83, the average of 13 analysts’ estimates compiled by Bloomberg.

“This reaffirms management’s confidence in its free cash flow,” R. Scott Graham, an analyst with Jefferies Group LLC, wrote in a note to clients. He rates the stock a buy.

Pentair bought Tyco International Ltd.’s flow-control division last year, assuming its Schaffhausen, Switzerland, domicile. The company cited tax advantages and a “well-developed legal and regulatory system” as reasons for the board’s decision to move to Ireland. Shareholder approval is still required.

Pentair rose 1.1 percent to $72.02 at 11:05 a.m. in New York, a record high. They have gained 46 percent this year.

Pentair plans to hold its 2014 financial outlook meeting for investors on Dec. 17.

To contact the reporter on this story: Rachel Layne in Boston at rlayne@bloomberg.net

To contact the editor responsible for this story: Randall Hackley at rhackley@bloomberg.net


Silicon Valley State of Mind
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Companies Mentioned

  • PNR
    (Pentair PLC)
    • $69.83 USD
    • 0.44
    • 0.63%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus