NEW YORK – ITT Inc (NYSE: ITT) has agreed to acquire equipment maker SPX FLOW from private equity firm Lone Star Funds for $4.775 billion in cash and equity, a move that significantly expands its engineered components and process technology business.
The deal, valued at 14.2 times SPX FLOW’s forecast 2026 adjusted core earnings (EBITDA), or 11.5 times including expected cost synergies, will add pumps, valves and mixers used in industrial, food, health and personal care markets to ITT’s portfolio.
ITT, a manufacturer of critical components and technologies, said the acquisition of U.S.-based SPX FLOW aligns with its growth strategy and will extend its capabilities in flow and process solutions. SPX FLOW, with brands like Waukesha Cherry-Burrell and Lightnin, generated $1.3 billion in revenue over the last twelve months with “greater than 21% EBITDA margin.”
“The acquisition of SPX FLOW checks all the boxes,” ITT Chief Executive Luca Savi said in a statement. “It builds on our core strength in highly engineered components, brings adjacent technologies to the core, expands our total addressable market.”
Upon closing, expected by the end of the first quarter of 2026, SPX FLOW will become part of ITT’s Industrial Process segment. ITT estimates the deal will yield $80 million in cost savings annually by the end of the third year and will immediately boost its gross and adjusted EBITDA margins.
The transaction consideration includes $700 million in ITT common stock issued to Lone Star. ITT said it will fund the cash portion through debt and equity financing, with commitments led by U.S. Bank National Association. The company expects to maintain an investment-grade credit rating.
Goldman Sachs & Co. LLC and UBS Investment Bank served as financial advisors to ITT, with Paul Hastings LLP acting as legal counsel.