SUBJect: More cartridge filter mergers
Two of the world’s largest power equipment suppliers are now two of the largest suppliers of cartridges and water treatment equipment. Siemens just announced that it is buying most of USFilter for close to $1 billion. GE has made several acquisitions including Osmonics and is now a market leader in the water treatment segment.
Pall Corp. and W.L. Gore & Associates have entered into a strategic alliance that gives Pall exclusive worldwide rights to Gore-Tex filter technology to be utilized in backwashable filtration systems for such applications as brine, catalyst recovery, and wastewater treatment.
Pentair, Inc. announced that it is buying Wicor Industries of Milwaukee for $874 million in cash and debt, and that it also plans to sell its largest business unit, the Pentair tools group, which sells power tools through Lowe’s, Home Depot, and other outlets.
These moves dramatically strengthen Pentair’s commitment to the highly profitable water-pump and filtration systems business, which Pentair has built through 11 acquisitions since 1995. Company officials have identified the $350 billion industry as a fast-growing and lucrative opportunity.
Pentair, with $2.7 billion in 2003 sales, formerly focused on three key product divisions: electrical enclosures, tools, and water technologies. Its enclosures business is expected to regain some of its pre-recession footing, while the water technologies group soon will get much larger. The water unit had $1.06 billion in sales last year.
CUNO had record fourth quarter sales of $77.5 million (up 15 percent) and record fiscal 2003 sales of $288.2 million (up 12 percent). Net income for the fourth quarter increased by 19 percent to $7.6 million from $6.4 million reported in 2002. Diluted EPS for the period were a record $0.44, up 16 percent compared to $0.38 in the prior year quarter.
Every month subscribers to our Cartridge Filters: World Market report are e-mailed an Update with news as per the above examples. The report provides 50,000 forecasts of cartridges by type, application, and country. Market shares of the players and other important data is kept current for online access. For more information, click on: http://www.mcilvainecompany.com/water.html#NO24 .
Bob McIlvaine
847-784-0012