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A mega-deal for Minnesota firm Pentair

Quite the deal by local firm Pentair. The New York Times' “Dealbook” story, by Michael De La Merced, says: “Tyco International agreed on Wednesday to merge its flow control unit with Pentair Inc. in an all-stock deal, creating a new powerhouse in the business of industrial pumps and valves. Under the terms of the deal, Tyco will proceed with its breakup plan, creating the flow business as an independent company. Pentair will then immediately merge with the new stand-alone entity, in a deal giving Tyco shareholders 52.5 percent of the company and Pentair investors the remainder. Pentair will also assume about $275 million in debt of the flow business. The transaction values Tyco Flow Control at about $4.9 billion. Pentair has a market value of about $4 billion. The new company will keep the Pentair name, and will be led by that company’s chief executive, Randall J. Hogan. It will retain the Pentair board, though it will add two directors named by Tyco. … After the deal, Pentair will keep its main headquarters in Switzerland, where Tyco is based, with its American offices in Minnesota. The new company will have about 30,000 employees, with half coming from each of its parents.”


The Strib story, by Jennifer Bjorhus, says: “Pentair Inc.'s merger with a division of Tyco International Ltd. could create more jobs in Minnesota, Pentair's top executive said Wednesday. ‘This is a growth play,’ said CEO Randall Hogan in an interview. ‘It gives us more control of our destiny.’ … Pentair produces water storage, filtration, pumping and treatment systems. It employs about 15,000 people, including 2,000 in Minnesota at its corporate headquarters in Golden Valley and plants in Anoka, White Bear Lake and New Brighton. … Hogan also said he doesn't think the merger will affect the company's Minnesota taxes. If it adds employees here, it could grow the payroll tax payout. However, being domiciled in Switzerland gives the company other tax advantages. The new Pentair's estimated annualized tax rate globally will fall to 24 to 26 percent from the 29 percent Pentair currently pays, the companies said. With estimated annual sales of $7.7 billion, Pentair will leapfrog other publicly-traded companies in Minnesota, jumping up from its current No. 20 spot.”

Dan McElroy, VP of the Minnesota Restaurant Association, wants politicians to follow his group’s lead in the minimum wage discussion. In a Strib commentary, he says: “One of the biggest challenges for Main Street restaurants is planning for minimum-wage increases. In 2009, the last time the minimum wage was increased, a local midsized restaurant in Worthington saw its payroll costs increase by approximately $30,000. A vast majority of the additional costs could not be passed on to customers because of the recession. Too often, it requires restaurants to lay off staff or cut shifts. To help bring some certainty to the restaurant industry, the Legislature needs to help restaurant owners plan for future minimum-wage increases. Our proposed Main Street Restaurant Wage would guarantee that servers make a base wage of at least $7.25 an hour, in addition to tips. When the minimum wage increases, servers who earn less than $12 an hour total, with tips, would be paid the new minimum wage. Those earning more than $12 an hour total would remain at the current wage.”

The Strib itself editorializes in favor of correcting the “error” of less pay for Personal Care Attendants who are relatives. “Ramsey County District Judge Dale Lindman ruled last Friday that it's legally acceptable to discriminate against PCAs who are relatives. But that does not mean that the 2011 Legislature and Gov. Mark Dayton were right to do so. DFLer Dayton has asked the Republican-controlled Legislature to undo their decision. Lindman's ruling adds urgency to his request. The 2012 Legislature ought not adjourn without correcting this error. Last October, Lindman stayed implementation of a newly imposed 20 percent pay cut for PCA-relatives while a lawsuit filed by a group of home health care providers was pending. That stay was lifted with the judge's decision last week. It's up to the Legislature to put the money back — preferably permanently. Socking 6,600 PCAs earning between $10 and $11 an hour with a 20 percent pay cut is not good for anyone involved, including taxpayers.” That one is a head-slapper.

A committee hearing on the Vikings stadium bill this week? Well, this’ll be interesting. At the PiPress, Doug Belden says: “After two weeks and a show of support from Minneapolis leaders, Sen. Julie Rosen, R-Fairmont, suggests the same panel can take it back up soon. But that would require a deal with charities on how to split the new tax money generated for the stadium package, Rosen said Wednesday ... As of Wednesday afternoon, ‘discussions are continuing but we're not there yet,’ said King Wilson, executive director of Allied Charities of Minnesota. Getting a deal wrapped up in time for a Senate committee hearing this week ‘would seem to be pretty optimistic,’ he said. Rosen said Allied Charities doesn't speak for all the state's charitable groups and that she believes many groups would favor the current deal, which would use $10 million of the anticipated $72 million in new tax revenue per year for tax relief for the charitable organizations. … Hanging over the discussion is the possibility raised by some that the Legislature will adjourn next week. If that happens, it would be ‘virtually impossible’ to get the stadium bill passed, said the House sponsor, Morrie Lanning, R-Moorhead. ‘I don't know how we could possibly process this,’ he said. Early adjournment ‘does create a problem for the stadium,’ Rosen agreed.” Uh, a small one, yeah.

National blogger Neil de Mause, at “Field of Schemes,” notes Doug Grow’s take-out on all the problems the stadium still faces, then goes on to say: “House Republican leaders want a ‘Plan B’ as a backup in case the e-pulltab money turns out to be a fiction — which means we're back where we were last fall, scrounging around for some way to raise a few hundred million dollars (memorabilia taxes, ticket taxes, bake sales — whoops, that'd cut into school fundraising) that won't [bleep] off the Vikings or anyone else important, and that Democrats and Republicans in the legislature can agree on. It's not an impossible task, and surely Gov. Mark Dayton is working hard on ways to get it done before the dwindling number of days in this legislative session runs out. But with the easy road being for the legislature to kick this until next session and hope a better idea emerges over the rest of the year.”  But … but … what if we upset the NFL?

GOP Sen. Dave Brown urges the Vikings to consider a loan instead of the current plan to have the state kick in $398 million via electronic pull-tabs. In a commentary in the Princeton Union-Eagle, Brown says: “What many, including the governor, are failing to address, is that there is room for discussion. There are still options on the table. Another bill that has been proposed gives the Vikings a loan from revenue bonds taken out by the state which would be paid back over 30 years. It does not require the state to expand gambling. It does not designate a specific site. It does not spend taxpayer dollars. Yet another viable option is still on the table — the Jerry Jones model. Jerry Jones, the owner of the Dallas Cowboys, built the stadium he wanted to build where he wanted. Why? He paid for two-thirds of the total facility costs. When the cost of the stadium exceeded the initial projections, Jerry Jones borrowed money to complete his team’s facility. Surely Vikings’ owner Zygi Wilf can use his billions to follow in the steps of Jerry Jones at any point he wishes.” But, Senator, that isn’t at all the way the NFL wants this done in Minnesota.

The GOP-controlled House and Senate both ignored funding for the Southwest LRT line in their bonding proposals. But the usually GOP-synched Chamber of Commerce is not cool with that. Jessica Mador of MPR reports: “The Southwest light rail is among a handful of projects around the country selected to receive competitive federal grants. If the state doesn't fund the light rail line this year, Todd Klingel, president and CEO of the Minneapolis Regional Chamber of Commerce, says the state risks losing that matching money. ‘This is about jobs and this is the most powerful leveraging opportunity that they could have for anything in the bonding bill,’ he says, ‘and that if nothing happens that opportunity could be lost.’ The state's total share of the project is $125 million, or ten percent. Aside from the state's share, the cost of the LRT will be paid 50 percent by the federal government, 10 percent by Hennepin County, and 30 percent from a five-county transit-dedicated sales tax.”

Hopes are not high for the 2012 Twins, who open the season April 6. But Collin Kottke at Bleacher Report has a list of “12 Must See Games” for the coming season. A sample: “Many players deserve a warm ‘homecoming,’ and Joe Nathan is definitely one of those players. Nathan gave his blood, sweat and tears to the Twins organization, and I expect a very warm welcoming on April 13. … (June 8, Chicago Cubs). Really any game of this series would be cool to see. All of baseball’s long history comes to town when the Cubbies show up. It’s the North Siders' first trip to Target Field, and it should be a special weekend in Twins Territory.” The Phillies in mid-June could also be good (or very bad), too.

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Comments (10)

PCA-relatives

Why would anybody expect to be paid to take care of their own relatives? I don't get it. My siblings and I have always taken care of our elderly and handicapped parents and in-laws without hesitation or compensation because that's what people do and have always done. Good grief.

Good grief.You clearly don't

Good grief.

You clearly don't understand what PCA entails. Being a true PCA is a full time job. How is someone who becomes a PCA for a relative supposed to support themselves?

The screamingly obvious

Because it allows people to take care of their own relatives instead of finding a job so hey can pay a stranger to do it, almost surely with lots of public help anway. I don't think you understand the extent of caregiving they're talking about.

Well, as long as it's worked

Well, as long as it's worked great for Dennis Tester, I'm convinced. No pay for these greedy people!

Those poor restaurant owners

Let's do a little math here. Suppose a person works for a restaurant and makes $7.25 an hour. A typical week would probably be about 25 to 30 hours, since most restaurants hire part time ONLY so they do not have to pay for insurance, PTO, or vacations. 30 hours at $7.25 is $217.50. Multiply by 0.8 to allow for taxes and you get $174. Times 4 weeks in a month to get $696. Got that? $696 A MONTH!!! For a hard physical labor job, with lousy hours, unpredictable scheduling, no benefits, and cranky management that wants to pick your pocket so they can keep even more of the money. Unless you are a kid, living with your parents, eating their food, and having their insurance, who can afford to work for such a pittance? When a restaurant owner, who had the capital to buy, equip, and stock a business, wants to count a server's tips to see if they can pay that server less, it just sceams GREED. And the really sad thing is that politicians will probably side with them, not the server, because maybe they will get a contribution or a free meal. Pathetic.

Thanks for the heads up

Wow! I wasn't aware that working in a restaurant was now required by law.

Yes, those poor restaurant owners...

Yep, if it weren't for those darn restaurant owners swinging their bags of money around. I have never heard of anyone making a fortune out of owning a restaurant. Here in St. Peter we just had a wonderful, higher end restaurant go under, the restaurant business is not for faint of heart. The restaurant industry is a perfect example of how the minimum wage laws do not work.

Only would the GOP...

focus on waitresses and PCA's as budget busters, then go on to their next meeting to try figuring out how they can hand over even more taxpayer money to billionaires from New Jersey.

And not just Ziggy

It appears from another article here at MinnPost, the GOOPers are doing their best to give money to the least efficient and costliest bus services in the region. I can't help but wonder if it's costing those suburban lines so much more per person because GOOPer "donations" and cushy non-public sector salaries aren't invovled at the executive level . . .

Wow

Pay your employees $7.25 an hour and your restaurant still fails? Sounds like lousy upper management or lousy food.