Consolidation continues in the industryPall completes acquisition of USFilter group
EAST HILLS, NY — Pall Corp. (NYSE: PLL) has completed the acquisition of the Filtration and Separations Group (FSG) from USFilter Corp. for total cash consideration of $360 million.
"This acquisition underscores our commitment to broadening the products and services we provide our customers," said Pall Chairman and CEO Eric Krasnoff in a statement.
"The combination of our companies gives us a boost in meeting our goal of doubling revenue and increasing earnings at an even faster rate over the next five years," Krasnoff said.
The transaction, Pall reported, is expected to have a slightly negative effect on earnings for the fiscal year ending 3 August, and be accretive to earnings thereafter.
Pall estimates it will realize a minimum of $15 million in synergies, 50 percent of which is expected to be achieved next fiscal year.
The FSG has approximately $270 million in sales, and, according to Pall, is a pioneer in the design, manufacture and sale of filtration products for the separation and purification of liquids and gases.
Its five divisions, including one in the United States, Germany and France, primarily serve the food and beverage industry.
When USFilter announced the sale in February, it said that total proceeds from the disposition of its filtration and separations business, including the sale of the Johnson Screens business late last year, were approximately $500 million.
USFilter, a wholly-owned subsidiary of Vivendi Environnement (NYSE: VE), is a provider of water and wastewater systems and services to commercial, industrial, municipal and residential customers.
Pall Corp. is involved in filtration, separations and purification in municipal drinking water, among other fields.
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