ITT Inc. has officially announced its intention to purchase SPX FLOW from Lone Star Funds in a transaction valued at nearly $4.8 billion. This major deal, a combination of cash and equity, is anticipated to close by the conclusion of the first quarter of 2026, subject to customary closing procedures.
The acquisition is poised to substantially strengthen ITT's Industrial Process (IP) division, which reported approximately $1.4 billion in revenue for 2024. By integrating SPX FLOW's advanced flow and process technologies, ITT aims to expand its reach into high-growth sectors such as industrial manufacturing, chemical processing, energy, mining, and the nutrition and health & personal care industries. SPX FLOW's strong financial performance, including $1.3 billion in revenue and a 22% adjusted EBITDA margin over the 12 months ending September 27, 2025, underscores the value it brings to ITT.
Financially, ITT plans to fund the cash component of the acquisition through a blend of debt and equity, issuing $700 million in common stock to Lone Star. The company expects to maintain its investment-grade credit rating, with net leverage projected to remain below 3.0x initially and decrease to under 2.0x within 18 months post-closing. Significant synergies are expected, with ITT forecasting $80 million in annualized cost savings by the third year following the acquisition, alongside an immediate uplift in gross and adjusted EBITDA margins, and double-digit adjusted EPS growth in the first full year, excluding intangible amortization.
This strategic acquisition represents a forward-thinking move by ITT, reflecting a commitment to innovation and expansion within critical industrial sectors. By leveraging the combined strengths of both entities, the newly formed organization is set to deliver enhanced value to customers and stakeholders, driving progress and efficiency in a variety of essential industries.