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PNRBullishM&Anews
High materiality9/10

Pentair to buy Taco Group for $1.4B, boosting growth and 2027 EPS

Jul 28, 2026, 6:53 AM EDT1 sourcesAI-analyzed
Why it may matterVerify against the original reporting

The accretive structure, substantial cost and revenue synergies, and a clear growth runway through Taco strengthen Pentair's topline and margins. Historical examples show similar bolt-ons driving stock upside when accretion is tangible and close timing is clear.

AI summary

What happened, with direct paths to the underlying reporting

Pentair announced a definitive agreement to acquire Taco Group Holdings for about 1.4 billion, expanding its water solutions platform into high growth HVAC and data center markets. Valuation is around 10.5x 2026 EBITDA, with 165 million in tax benefits and 30 million in run-rate synergies, guiding 0.10 to 0.15 accretive FY2027 Adj EPS. The deal strengthens cross selling and aftermarket opportunities, supporting a more diversified growth engine.

  • Pentair to acquire Taco Group for $1.4B. Accretion: 0.10-0.15 in 2027.
  • Deal values Taco 2026 revenue at about 540 million; margins above 20%.
  • Cross sell expansion across HVAC, data centers, and infrastructure end markets.
  • Close expected in Q4 2026; financing includes cash and bridge.
  • Net leverage about 2.4x post close; de-lever to below 1.5x within 2 years.

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