Acquisition leads to standalone water entity

ITT Corporation has completed its acquisition of YSI Incorporated,  (see report Merger agreement announced 11/7/2011) forming a water-focused analytics business with annual revenue of approximately $300 million. YSI is a leading developer and manufacturer of sensors, instruments, software, and data collection platforms for environmental water monitoring, with facilities in the U.S., Europe and Asia.

The new water company will be named Xylem ('zi-lem) and will consist of the Water & Wastewater (including wastewater transport; biological, filtration and disinfection treatment and analytics), Residential & Commercial Water and Flow Control businesses.
The name Xylem, derived from classical Greek, is the tissue that transports water in plants. It signifies the company's unique position in the marketplace as a leading equipment and service provider of a broad product line that addresses the full cycle of water – from collection, distribution and use to the return of water to the environment. Xylem also highlights the engineering efficiency of our water-centric business by linking it with the best water transportation of all - that which occurs in nature.

"YSI’s product offering complements our existing water portfolio and enables us to better serve our global customers and build on our commitment to solve challenges that our customers face across the water industry,” said Gretchen McClain, president of ITT's Fluid and Motion Control business, and future chief executive officer of Xylem, the new standalone water company separating in a tax-free spinoff from ITT later this year - see box!

“YSI’s expertise in field and outdoor, environmental applications strongly enhances and broadens our analytical instrumentation platform,” said Chris McIntire, president of ITT’s Analytics business area.

YSI, with a legacy of invention and innovation, was founded in 1948, and reported 2010 global revenues of $101 million. Since 1990, YSI has demonstrated a commitment to its core values and good corporate citizenship through the YSI Foundation.

ITT Analytics is a leading manufacturer of premium field, portable, laboratory and online analytical instruments used in water and wastewater, environmental, medical, and food and beverage applications. The company’s meters, sensors, analyzers and related consumables are used every day by thousands of end-users worldwide to analyze and control quality in countless industrial applications where precise measurement is required. ITT Analytics’ products are sold under the globally recognized brands WTW, SI Analytics, OI Analytical, Royce Technologies, Aanderaa Data Instruments (AADI), Global Water Instrumentation, ebro and Bellingham & Stanley.

Merger agreement announced

ITT Corporation  and privately held YSI Incorporated have entered into a definitive agreement for ITT to acquire, via merger. The financial terms of the proposal were not disclosed. YSI had 2010 global revenues of $101 million and employs 390 people at several facilities in the U.S., Europe and Asia. Completion of the acquisition is expected in the third quarter 2011, pending customary closing conditions and approval from YSI’s shareholders.

“The addition of YSI is the next logical step in our strategy to acquire attractive companies whose businesses complement our existing water portfolio,” said Gretchen McClain, president of ITT’s Fluid and Motion Control business, and future chief executive officer of the new standalone water company that will separate from ITT later this year. “We see very compelling growth characteristics in the analytical instrumentation market. As we move toward the formation of our new water company, the addition of YSI further builds on our attractive analytics business and our commitment to provide the best solutions to the challenges our customers face across the water industry.”

ITT’s analytics business is a leading manufacturer of premium field, portable, laboratory and online analytical instruments used in water and wastewater, environmental, medical, and food and beverage applications. The company’s meters, sensors, analyzers and related consumables are used every day by thousands of end-users world-wide to analyze and control quality in industrial applications where precise measurement is required. ITT’s analytics products are sold under the globally recognized brands WTW, SI Analytics, OI Analytical, Royce Technologies, Aanderaa Data Instruments (AADI), Global Water Instrumentation, ebro and ¬Bellingham & Stanley.


“The opportunity to add a company with the brand recognition and reach of YSI not only strengthens our Analytics portfolio, but also gives us a great opportunity to globally expand our entire existing brand offering,” said Chris McIntire, president of ITT Analytics. “YSI’s expertise in field and outdoor, environmental applications strongly complements and broadens our existing capabilities. From our workplace cultures to our philanthropic initiatives, YSI and ITT are a perfect fit.”

Rick Omlor, chairman and chief executive officer of YSI Incorporated, said, “We believe joining ITT offers a great opportunity to continue growing our business, and I’m especially pleased that YSI will live on within a strong global company united around water. With a 63-year legacy founded in scientific discovery and innovation, YSI’s strong brand equity, backed by ITT’s global citizenship philosophy is the right choice to move YSI into the future.”