Strategic Acquisition of SPX FLOW by ITT Justifies Buy Rating Due to Expected Earnings Accretion and SynergiesWe estimate the deal is HSD % accretive (when adding back amortization), inclusive of ~12% dilution from our estimated equity issuance (nearly $1.8B to make the leverage math work). Assuming high 20s incrementals, 4% top line growth, and full realization of $80MM in synergies, we estimate it adds $2.75 of earnings in year 3 (on the adjusted share base but before accounting for legacy EPS dilution). FLOW today looks different vs. the larger, lower margin version that went private in early 2022. Air treatment and hydraulic tools businesses ($300-$400MM in total sales) have been sold and profitability was increased from LDD EBITDA to over 20% through an 80/20 focus and shift in production to lower cost regions. Investor feedback so far has been skeptical on SPX given prior experiences. Understandable.