Pentair reaffirmed its full-year outlook, projecting adjusted earnings of $4.60 to $4.80 per share and a 4% to 7% decline in sales.
The company also said it will buy hydronic and water-based solutions company Taco Group Holdings for $1.40 billion.
Upon closing, Taco is planned to be a part of Pentair's Water Solutions reportable segment, and it is expected to continue going to market under the Taco brand.
The deal is expected to close in the fourth quarter of this year.
Pentair posted a fall in second-quarter sales on Tuesday, hurt by weak housing demand leading to pool channel destocking in the U.S., sending its shares down nearly 5% premarket.
CEO John L. Stauch said the quarter's results came in below expectations, primarily due to a larger-than-anticipated inventory correction in the pool channel.
The pool segment, one of Pentair's three verticals and its most profitable, sells pumps, filters, heaters, automation systems and other equipment for residential and commercial swimming pools.
Second-quarter sales fell 17% to $933 million, weighed down by roughly $170 million of inventory destocking in the pool channel.
Pentair reported an adjusted profit of $1.14 per share for the second quarter, below analysts' expectations of $1.20, according to data compiled by LSEG.
