Pentair - Hoffman history

Pentair was founded in July 1966 in Arden Hills, Minnesota, as a five-person partnership for the purpose of manufacturing high-altitude research balloons.

The partners incorporated as Pentair Industries, Inc., in August and completed an initial public offering in January 1967 to sustain their seriously undercapitalized business.

As Del Marth later reported, “By June, 1968, before Pentair was two years old, the corporate dream had become a nightmare.

In 1969, due to Pentair's new status as an acquisition-oriented, international corporation, company stock soared from $2 per share to $25 and a 3-for-1 split was declared.

Although Pentair had sold Peavey in 1976 due to plant and market limitations, it had now affirmed itself as a major supplier of coated groundwood, book grade, and commercial printing papers, producing some 350,000 tons annually.

Jaffe, Thomas, “Paper Profits,” Forbes, August 25, 1986.

In 1988 Pentair completed one of its largest purchases, that of Federal-Hoffman Corporation (FC Holdings, Inc.), a Minnesota-based manufacturer of sports ammunition as well as metal and composite electrical enclosures.

“Paper Losses Mean a Real Income Drop for Pentair,” Star Tribune, February 5, 1991.

______, “Pentair’s ‘91 Revenues Dip, but St Paul Company Reports a 28.2 Percent Increase in Net Income,” Star Tribune, January 31, 1992.

In September 1994 Pentair announced that it was examining the future of its paper businesses.

In April 1995 Pentair sold Cross Pointe Paper Corporation to Noranda Forest, Inc., for $203.3 million.

Hoonsbeen, Mark, "Paperless Tiger," Twin Cities Business Monthly, April 1996.

While building up these three core areas, Pentair also made one other significant divestment of a peripheral business, selling Federal Cartridge to Blount International, Inc., for $112 million in October 1997.

Also, in January 1998 Pentair purchased ORSCO, Inc., producer of precision oil dispensing systems.

In December 1999 Randall Hogan was promoted to president and chief operating officer.

A pretax restructuring charge of $40.1 million and a pretax loss of $36.3 million on the sale of the Lincoln and Century businesses were major factors in a further reduction in profits for 2001 to $32.9 million.

Then in December 2003 Pentair spent $215 million for Northbrook, Illinois-based Everpure, Inc., a provider of water filtration products for the foodservice, vending, residential, recreational vehicle, marine, and aviation markets.

The Tools Group was sold to Black & Decker Corporation for $775 million in October 2004.