Pentair completes $1.4 billion acquisition of Taco Group
Pentair plc closed its purchase of Taco Group Holdings for $1.4 billion on October 1, 2026. The deal adds Taco’s hydronic and water‑based solutions to Pentair’s Water Solutions segment and keeps the Taco brand and its Cranston, Rhode Island operations. Pentair expects the combination to generate $0.10‑$0.15 of adjusted EPS accretion in fiscal 2027 and about $30 million of run‑rate cost synergies. The company said the transaction will increase its net leverage to roughly 2.4× and it plans to de‑leverage to below 1.5× within two years.
Why it matters
Pentair said the acquisition will be $0.10‑$0.15 accretive to adjusted EPS in 2027 and will deliver $30 million of cost synergies, which could improve profitability and cash flow. The higher leverage ratio of approximately 2.4× and the target to reduce it below 1.5× may affect the company’s credit profile and financing costs.
Key facts
- 1Pentair completed the acquisition of Taco Group Holdings for $1.4 billion, subject to customary adjustments. investing.com
- 2The purchase price represents a multiple of approximately 10.5× 2026E EBITDA, including about $165 million in tax benefits. securities.io
- 3Pentair expects the deal to be $0.10‑$0.15 accretive to adjusted EPS in fiscal 2027. securities.io
- 4Pentair anticipates about $30 million of run‑rate cost synergies. securities.io
- 5Pentair reported revenue of approximately $4.2 billion in 2025 and employs about 9,000 people globally. investing.com
- 6Pentair expects a net leverage ratio of approximately 2.4× after closing and plans to reduce it to below 1.5× within two years. securities.io
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.