Breaking News | Pentair Acquires Taco Group for $1.4B, Takes On Significant Debt

Pentair agreed to acquire Taco Group Holdings for approximately $1.4 billion, adding a century-old hydronic systems manufacturer with an expected $540 million in 2026 revenue. The deal values Taco at 10.5x 2026E EBITDA, incorporating $165 million in tax benefits and $30 million in anticipated run-rate cost synergies. Pentair will fund the purchase with existing cash and committed bridge financing, which will be refinanced with permanent debt, bringing net leverage to approximately 2.4x EBITDA at close. The company expects accretion of $0.10 to $0.15 per share in fiscal 2027 and plans to reduce leverage below 1.5x within two years. Taco manufactures pumps, valves, expansion tanks, heat exchangers, and advanced controls for hydronic heating and cooling systems serving commercial, industrial, and residential markets. The Taco brand will remain, operating within Pentair's Water Solutions business with a maintained presence in Cranston, Rhode Island. Transaction close is expected in Q4 2026, subject to regulatory approvals.

• Debt refinancing terms and interest costs when bridge financing converts to permanent debt

• Progress on the $30 million cost synergy target and timeline to realize savings

• Q4 2026 transaction close and any regulatory conditions

• Net leverage reduction trajectory toward the stated below 1.5x within two years goal

• Cross-selling traction in Pentair's distribution channels and Taco's manufacturer representative network