Pentair plc (NYSE: PNR) has reached a definitive agreement to acquire Manitowoc Ice, a provider of commercial ice makers, for $1.6 billion, subject to “customary adjustments.”

When adjusted for approximately $220 million of expected tax benefits, the net transaction value is approximately $1.38 billion, Pentair said.

The company said it expects to fund the acquisition with “new debt that is anticipated to be investment grade.” Subject to closing conditions and regulatory approvals, the deal is expected to close in the second quarter of 2022.

“We expect this strategic acquisition to be a game changer for our commercial water solutions platform, establishing a differentiated, total water management offering and expanded network within the foodservice industry,” said John Stauch, Pentair president and CEO. “Manitowoc Ice’s industry-leading global positions in an incredibly attractive industry, coupled with its strong track record of profitable growth and culture of innovation and sustainability are expected to further establish Pentair as a leader in a vast and growing industry. At Pentair, we have remained steadfast in our commitment to developing tailored, sustainable solutions that bring water to life through effortless user experiences. We believe Manitowoc Ice’s culture and priorities are highly aligned with this mindset through value-added solutions that are centered on its customers’ needs.”

Manitowoc Ice, a portfolio brand of Welbilt, Inc. (NYSE: WBT), designs, manufactures and distributes commercial ice machines. The company has an installed base of approximately 1 million units and more than 200 models of commercial ice machines worldwide.

The company employs more than 800 team members and operates facilities in Manitowoc, Wisconsin, Monterrey, Mexico, and Hangzhou, China. Manitowoc Ice generated $308 million in revenue in 2021.