LONDON – Pentair plans to split into standalone water and electrical companies, spinning off its $2.1 billion electrical business to shareholders.

The Water company, to be named at a later date, will retain the Pentair name and ticker symbol. It posted some $2.8 billion in sales in 2016.

Under the deal, Pentair Chairman and CEO Randall Hogan will retire to serve as Chairman of Electrical. John Stauch, current senior vice president and CFO, will serve as Water’s CEO. Karl Frykman, president of Pentair’s Water segment, has been named COO.

"We are grateful for Randy's leadership and are excited that we will continue to benefit from his expertise as he assumes the role of Chairman of Electrical," said William T. Monahan, Lead Director of Pentair. "During his 17 years as CEO, the Company has dramatically transformed and delivered more than a six-fold increase in market capitalization."

According to a Pentair release, the company expects to complete the division in the second quarter of 2018. According to the Minneapolis Star Tribune, the Water company will maintain the same structure and the Minneapolis-St. Paul area will continue to be the main U.S. headquarters. The split is not expected to result in job cuts.

The water company will include the filtration and process, flow technologies, and aquatic and environmental systems business groups. Pentair’s enclosures, thermal management, and electrical and fastening solutions groups will remain with the electrical company.

Pentair’s recently sold its valves and controls business to Emerson Electric Company for over $3.1 billion.