Pentair has entered into a definitive agreement to acquire Taco Group Holdings for approximately $1.4 billion, subject to customary adjustments. The transaction will add hydronic and water-based solutions for HVAC, data centers and related infrastructure to Pentair’s portfolio.
Taco supplies pumps, valves, tanks, heat exchangers and advanced controls for commercial, industrial and residential applications. The company is expected to generate approximately $540 million in revenue in fiscal 2026, with adjusted EBITDA margins above 20% when anticipated run-rate cost synergies are included.
Pentair expects approximately $30 million in run-rate cost synergies from supply-chain and operational efficiencies. The acquisition is expected to add approximately $0.10 to $0.15 to adjusted earnings per share in fiscal 2027 and create cross-selling opportunities through Pentair’s distribution network and Taco’s manufacturer representative network.
The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions and regulatory approvals. Pentair plans to finance the acquisition with cash on hand and committed bridge financing, which it intends to refinance through a permanent debt issuance. Taco is expected to join Pentair’s Water Solutions segment and continue operating under the Taco brand.
“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,” said John L. Stauch, Pentair President and CEO.
