Pentair PLC (NYSE: PNR), a leader in helping the world sustainably move, improve, and enjoy water, has entered into a definitive agreement to acquire Taco Group Holdings, a leader in hydronic and water-based solutions, for approximately $1.4 billion. The deal is expected to close later this year and is subject to customary adjustments.
The acquisition enhances Pentair's exposure to attractive, high-growth end-markets across mission-critical applications, including HVAC, data centers, and related infrastructure buildout, and creates a more comprehensive water-management platform aligned with long-term secular trends. The purchase price represents a multiple of approximately 10.5x 2026E EBITDA, including approximately $165 million in tax benefits and approximately $30 million in anticipated run-rate cost synergies.
Founded in 1920 and headquartered in Cranston, Rhode Island, Taco is a market leader in hydronic and water-driven solutions, specializing in innovative, sustainable, and high-performance products for the HVAC, plumbing, and industrial sectors. Over its more than 100-year history, Taco has established a premier brand, a track record of innovation, and a comprehensive portfolio of industry-leading pumps, valves, tanks, heat exchangers, and advanced controls. The company serves a diverse customer base across residential, commercial, industrial, and municipal end-markets, with operations spanning North America, Europe, and Asia. Taco is expected to generate approximately $540 million in revenue in fiscal year 2026, with adjusted EBITDA margins above 20 percent when including expected run-rate cost synergies.
With this acquisition, Pentair is expanding its portfolio of smart, sustainable water solutions while broadening its access to durable aftermarket revenue streams through Taco's large installed base. The combined business will strengthen Pentair's presence across commercial end-markets, including data centers, schools, hospitals, universities, and multi-family residential, with sustained demand supported by long-term water and sustainability trends. Bringing together Pentair's distribution network and Taco's manufacturer representative network is also expected to create meaningful cross-sell opportunities across OEMs, distributors, contractors, engineers, and end users. Speaking about the impact of the acquisition, John L. Stauch, President and CEO of Pentair, stated:
"This highly strategic and value creating acquisition enhances the scale and reach of Pentair's innovative water solutions serving high-growth commercial and industrial end-markets, including HVAC and data centers. The addition of Taco will provide Pentair with a more comprehensive suite of solutions and enhanced development capabilities to benefit our customers across commercial, industrial and residential applications. We are confident in our ability to unlock significant profitability as we scale Taco, accelerate its growth across commercial markets and implement the Pentair Business System. We look forward to welcoming the Taco team to Pentair, ushering in a new chapter of growth and value creation."
The transaction is expected to be approximately $0.10 to $0.15 accretive to Adjusted EPS in fiscal year 2027. Reflecting on the new chapter for the business, John Hazen White, Jr., Owner and Chairman of the Board, and Benjamin White, President of Taco, remarked:
"This partnership with Pentair allows us to accelerate our growth, expand our capabilities and further invest in our innovation and technology. It will also allow us to preserve our values, expertise and customer relationships, which have made Taco successful."
Pentair expects to have a net leverage ratio of approximately 2.4x following the close of the transaction and expects to de-lever to below 1.5x within two years, maintaining ample financial flexibility to continue investing in key growth initiatives while building on its more than 50-year track record of growing its dividend. The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions and necessary regulatory approvals, and will be financed with a combination of cash on hand and committed bridge financing that Pentair intends to refinance through a permanent debt issuance. Upon completion, Taco will become part of Pentair's Water Solutions reportable segment, continue to go-to-market under the Taco brand, and maintain a primary presence in Cranston, Rhode Island.
Pentair had revenue in 2025 of approximately $4.2 billion, with approximately 9,000 global employees serving customers in more than 150 countries. The company is a core large-cap value S&P 500 equity focused on smart, sustainable water solutions across residential, commercial, and industrial applications.
Jefferies LLC served as financial advisor to Pentair, with Faegre Drinker Biddle & Reath LLP serving as legal advisor, U.S. Bank National Association as lead financing provider, and Joele Frank, Wilkinson Brimmer Katcher as strategic communications advisor. Goldman Sachs & Co. LLC and Doeren Mayhew Advisors served as financial advisors to Taco, with Loeb & Loeb LLP serving as legal advisor.
The acquisition of Taco Group Holdings underscores Pentair's commitment to strategic growth and its efforts to strengthen its position as a leading provider of comprehensive, sustainable water-management solutions serving high-growth commercial, industrial, and residential end-markets across North America and beyond.
