ITT to acquire SPX FLOW for $4.775B in cash and equity

ITT (ITT) announced it has entered into a definitive agreement with Lone Star Funds to acquire SPX FLOW, a provider of highly engineered equipment and process technologies for attractive end markets including industrial, health and nutrition, for a total consideration of $4.775B in cash and equity. This represents 14.2x SPX FLOW’s forecasted full year 2026 adjusted EBITDA, or 11.5x including expected cost synergies. In the trailing twelve-month period ended Sept. 27, 2025, SPX FLOW generated $1.3B in revenue with approximately 42% gross margin and greater than 21% EBITDA margin (22% adjusted), with 43% aftermarket sales. Upon close, SPX FLOW will join ITT’s Industrial Process segment. IP is a global leader in centrifugal and twin-screw pumps and engineered valves with about $1.4B in revenue in 2024. The transaction consideration will consist of a combination of cash and $700M in ITT common stock issued to Lone Star. ITT intends to fund the cash portion of the transaction consideration through a combination of debt and equity and has secured commitments for a term loan facility and a bridge loan facility, both of which are being led by U.S. Bank National Association. ITT expects to maintain its investment grade credit rating, with projected net leverage below 3.0x and less than 2.0x within approximately 18 months post-close. The transaction is subject to customary closing conditions, including the receipt of applicable regulatory approvals, and is expected to close by the end of Q1 2026.