ITT Inc. is expanding its footprint in the industrial tech space with a multibillion-dollar acquisition of SPX FLOW, a move that boosts its reach across critical equipment and process technologies.
The Stamford-based manufacturer announced Friday it will buy SPX FLOW for $4.775 billion in a cash-and-stock deal with Lone Star Funds, the private equity firm that currently owns SPX FLOW.
Stronger in pumps, valves, mixers and more
SPX FLOW specializes in flow and process equipment used in industries like chemical, energy, mining, health and nutrition. Its portfolio includes well-known brands like Lightnin®, Bran+Luebbe®, and Waukesha Cherry-Burrell®. Over the last year, the company brought in $1.3 billion in revenue with a 22% adjusted EBITDA margin — and 43% of its sales came from aftermarket services.
Once the deal closes, SPX FLOW will become part of ITT’s Industrial Process segment, a $1.4 billion business known for high-performance pumps and valves.
“This acquisition checks all the boxes,” said ITT CEO Luca Savi. “It builds on our core strength in highly engineered components, expands our market, and is an outstanding cultural fit.”
Expected benefits and financial upside
ITT expects the deal to deliver $80 million in cost synergies within three years and drive significant earnings growth. The transaction is projected to immediately boost gross margin and adjusted EBITDA margin, with adjusted earnings per share rising in 2026 and hitting double-digit growth in the first full year post-close, excluding amortization of intangibles.
The purchase price equals 14.2 times SPX FLOW’s forecasted 2026 adjusted EBITDA — or 11.5 times when accounting for those expected synergies.
SPX FLOW CEO Marc Michael called the deal “an exciting new chapter,” noting that the two companies will be able to “provide customers with the technology, engineering and operational capabilities to create innovative solutions for their process needs.”
What’s next
The deal is set to close by the end of the first quarter of 2026, pending regulatory approval. ITT is financing the purchase with a mix of debt and equity, including $700 million in ITT stock issued to Lone Star. The company says it plans to maintain its investment-grade credit rating, with net leverage dropping below 2.0x within 18 months post-close.
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