Pentair Expands National Footprint With Ken’s Beverage Acquisition

Water treatment and sustainable solutions provider Pentair (PNR) has acquired the assets of Ken’s Beverage for a cash consideration of about $80 million.

Ken’s Beverage (KBI) provides beverage equipment and services to commercial customers through a network of 30 branches. This acquisition will help Pentair expand its national commercial service network.

Pentair Consumer Solutions Executive Vice President and President Mario D’Ovidio said, “We are excited about the addition of KBI and the new growth opportunities it brings as we advance our strategy to provide a full suite of products and services for commercial customers.” (See Pentair stock analysis on TipRanks)

D’Ovidio added, “This acquisition further realizes our vision to be the leading provider of residential and commercial water treatment solutions, delivering smart, sustainable solutions that empower customers to make the most of life’s essential resources.”

Earlier this month, Pentair announced a quarterly cash dividend of $0.20 per share. The dividend is payable on August 6 to shareholders of record as of July 23.

Significantly, this is the 45th consecutive year of dividend increases for Pentair.

On April 23, Citigroup analyst Andrew Kaplowitz reiterated a Buy rating on the stock and increased the price target to $78 (16.5% upside potential) from $73.

Kaplowitz believes Pentair shares are poised for a rise on the back of lean inventory channels coupled with a recovery trend in the company’s more cyclical end markets.

Consensus among analysts is that Pentair is a Moderate Buy based on 3 Buys, 4 Holds, and 1 Sell. The average analyst price target of $70.75 implies 5.7% upside potential.

Shares have gained about 90% over the past year.

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