As the analytical instrument and lab product industry grows, so do companies’ interest in it. Last year, Ahlstrom and Pentair were among the multimillion-dollar companies that increased their industry presence. Both firms serve a variety of markets based on their core focuses. In the case of Ahlstrom, its focus is fiber-based materials. Pentair’s core focus is water solutions. By acquiring instrument and lab businesses, each firm is betting on testing needs to drive growth.

Based in Finland, publicly held Ahlstrom had 2012 revenues of €1.0 billion ($1.3 billion = €0.78 = $1). Its business is organized by four segments: Building and Energy, Filtration, Food and Medical, and Label and Processing. Within the Filtration segment, Advanced Filtration products include lab filtration paper products, such as filter and glass microfiber papers, as well as papers for use with chromatography, electrophoresis and Western blots.

In October, Ahlstrom expanded its lab business through the acquisition of Swedish firm Munktell Filtration for $25 million (see IBO 10/31/12). Upon completion of the deal, Ahlstrom stated, “Ahlstrom will become a global leader in life science and laboratory filtration materials.” Munktell Filtration supplies products for environmental control, industrial, medical and air filtration applications, but its main business is products for laboratory and medical applications. The firm’s lab product lines include filter papers, microfiltration products, and paper for soil, seed and beverage analyses, as well as chromatography and blotting papers. Its life science and medical products include filtration media for newborn screening and breathing-system filters. In 2011, Munktell posted sales of $21 million.

Regarding the acquisition, Liisa Nyyssönen, vice president of Communications at Ahlstrom, told IBO, “Ahlstrom is aiming to grow strongly in the advanced filtration business.” The focus on this business is in line with Ahlstrom’s statement to investors that it intends to grow through differentiated technology and high-margin products. One growth opportunity is geographic. “Up until the acquisition, Ahlstrom had a stronger footprint in US, whereas Munktell has an established market position in Europe,” she explained.

The acquisition also expanded Ahlstrom’s lab business. “Ahlstrom has had a complete catalog of filter media already available prior to the Munktell acquisition, but we feel that through adding Munktell to our portfolio we can have a wider market reach and also enter some new applications,” said Ms. Nyyssönen. “Munktell also brings capabilities into the microfiltration business, which Ahlstrom did not have before.” She also noted synergies between the two companies’ air pollution control and process filtration offerings.

As for growing the acquired business, Ms. Nyyssönen told IBO, “We aim to grow through leveraging the Ahlstrom sales network, which is already set up globally. In addition, we can now complete the Munktell portfolio with products available from other Ahlstrom locations.” Asked about future acquisitions, she stated that the company aims to grow organically, adding, “we are evaluating attractive opportunities through partnerships and acquisitions.”

Pentair expanded its offering of analytical instruments last year with the purchase of Tyco Flow, Aquatic Eco-Systems (see IBO 12/15/12) and Point Four Systems (see IBO 12/15/12). Pentair reported 2012 revenues of $4.4 billion, up 27.8% due to the September 2012 merger with Tyco Flow, a provider of pumps and filters. Pentair operates eight business units in three operating segments, Water & Fluid Solutions, Valves & Controls, and Technical Solutions.

Pentair’s Water & Environmental Systems and Aquatic Systems business units, both part of Water & Fluid Solutions, offer systems for water quality monitoring. The Tyco Flow merger added Greenspan Environmental Technology to the Water & Environmental Systems unit. Greenspan is an Australia-based supplier of environmental monitoring systems and consulting services for flood control, irrigation, water infrastructure, oceanographic monitoring, hydrography, and water quality. Products include field and on-line systems for measuring chemical, biological and physical parameters.

Pentair Aquatic Systems’ October 2012 acquisitions of Aquatic Eco-Systems and Point Four Systems (PFS) added water quality monitoring systems for aquaculture applications. Betsy Day, manager of Corporate Communications at Pentair, told IBO, “PFS’s application expertise in aquatic life–related water quality monitoring and controls, along with their established footprints in key aquaculture markets of Canada, China and Chile, enable us to quickly create aquaculture systems that operate efficiently for producers.”