PRIVATE equity house Doughty Hanson has agreed to sell water filtration firm Clean Process Technologies (CPT) for €503m (£443.5m).
US firm Pentair will buy the business, which is a division of Netherlands-based cleantech company Norit.
Providing nine per cent of the world’s population with purified water, CPT has approximately 1,200 employees and operates five production and research and development facilities.
It specialises in water and beverage filtration systems, including carbon management and pumping equipment.
Pentair estimates the deal will generate sales of more than $350m?(£216.8m) for this year, with earnings per share for 2012 hitting 15 to 20 cents per share.
In 2010, CPT reported sales of €222m and pre-tax profits of €35m. Its sale to Pentair is expected to close in the second-quarter of next year, subject to conditions and regulatory approval.
Minneapolis-based Pentair’s purchase will give it exposure in emerging markets.
Following the divestment of CPT, Doughty Hanson will continue to own the majority stake in Norit, alongside the firm’s management.
Founded in 1985 by Nigel Doughty and Richard Hanson, the private equity house is one of the oldest European buyout firms. It recently acquired London-based cinema chain Vue Entertainment in a £450m deal.
Co-head of private equity at Doughty Hanson Mark Corbdige said: “Under Doughty Hanson’s ownership there has been significant investment in the CPT business, including through the downturn, to ensure that it remained the innovation leader in its field.”