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What: Shares of Pentair
So what: The new company will contain Pentair and Tyco's flow control business, making a dominant force in the industry. The company will be 52.5% owned by Tyco shareholders and 47.5% owned by Pentair shareholders.
Now what: The market is reacting to a potentially strong partnership that will retain the Pentair name. Tyco is in the process of breaking itself up and this is a piece of that strategy. The all-stock deal won't be a drain on Pentair's balance sheet and it could be a boon to earnings. Pentair thinks the deal could add $0.40 per share to earnings in 2013 and $5 per share by 2015, so this may be a great buying opportunity.
Interested in more info on Pentair? Add it to your watchlist by clicking here.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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