Sterne Agee Increases Estimates And Price Target On Pentair

According to Sterne Agee, Pentair PNR estimates and price target are increased. Sterne Agee reported that Pentair announced an agreement to acquire Norit Holding B.V.'s Clean Process Technologies (CPT) division for €503M (~$705M), or ~2x estimated 2011 revenue of ~$350M, plus minimal net debt at closing. “Upon expected close in 2Q11, CPT is expected to be accretive to adjusted 2011 EPS by $0.03 ($0.15 dilutive on a GAAP basis) and accretive to 2012 EPS by $0.15-$0.20.” Pentair closed yesterday at $38.50.