March 3 (Reuters) - Water treatment company Pentair plc (PNT.DE) said on Thursday it had agreed to buy commercial ice machines maker Manitowoc Ice for $1.6 billion in cash, to expand its drinking, cooling and cooking offerings to the foodservice and hospitality sectors.
The deal, whose net value excluding tax benefits is about $1.38 billion, comes amid a surge in prices for kitchen equipment as restaurants struggle with supply chain logjams.
Manitowoc, which is owned by Welbilt Inc (WBT.N), serves many global restaurant chains and quick serve restaurants and generated revenue of $308 million in 2021.
The company, which will operate within Pentair's Water Solutions platform after the deal's closure, employs over 800 workers and operates facilities in Manitowoc, Wisconsin, Monterrey, Mexico and in Hangzhou, China.
The deal, which will be funded with Pentair's new debt, is expected to close in the second quarter of 2022.
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