ITT to buy SPX Flow in nearly $4.8 billion deal (updated)
05/12/2025 11:46
Adds details and background throughout
Dec 5 (Reuters) - Industrial parts supplier ITT ITT.N said on Friday that it will buy pump-maker SPX Flow from private equity firm Lone Star Funds in a cash-and-equity deal valued at $4.775 billion.
The acquisition would bolster ITT's aftermarket portfolio by adding SPX Flow's services for pumps, valves, mixers and other machinery, while also expanding its reach in key markets such as chemicals, energy, mining and health.
Aftermarket refers to the sale of replacement parts and maintenance products once original equipment is in use and offers industrial suppliers a steady, high-margin source of recurring revenue.
As of September 2025, about 43% of SPX's revenue of $1.3 billion in the trailing twelve months came from aftermarket sales.
SPX Flow, set up in 1912 under the name The Piston Ring Company, was taken private by Lone Star in 2021 for $3.8 billion, including debt.
Last month, Parker Hannifin PH.N said it would buy privately held Filtration Group for $9.25 billion to expand its reach into the aftermarket business.
The SPX Flow deal will immediately add to ITT's margins and adjusted earnings per share in 2026, the company added.
It also estimates $80 million run-rate of cost synergies by the end of three years after the deal closes, which is expected by the first quarter of 2026.
As part of the deal, ITT will issue $700 million in ITT common stock to Lone Star and fund the cash portion of the transaction via debt and equity.
ITT has tapped Goldman Sachs and UBS Investment Bank as financial advisors and Paul Hasting as legal counsel.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Mrigank Dhaniwala and Shailesh Kuber)
((Aishwarya.Jain@thomsonreuters.com;))