Pentair has agreed to acquire valve solutions provider Hydra-Stop for around $290 million in cash from Madison Industries. The acquisition is expected to be completed by the end of Q1 2023, with an adjusted net transaction value of approximately $240 million after accounting for expected tax benefits.
Pentair plc (NYSE: PNR), a global leader in water management solutions, has agreed to acquire Hydra-Stop LLC for approximately $290 million in cash from Madison Industries. The acquisition is expected to be completed by the end of 2025, subject to customary closing conditions, including necessary regulatory approvals [1].
Upon closing, Hydra-Stop will be operated within the Commercial and Infrastructure business unit of the Pentair Flow business segment. The acquisition is anticipated to generate around $50 million in revenue in full year 2025, with an expected return on sales of approximately 30% [2]. Hydra-Stop, founded in 1981, is a leading provider of specialty insertion valves and line stop fittings, serving water utility service providers and municipalities throughout the United States.
De’Mon Wiggins, Executive Vice President and President of Pentair Flow, commented on the acquisition, stating, "This strategic acquisition will help accelerate our growth initiatives for our commercial and infrastructure business by supporting municipalities and their service providers in addressing critical water issues through differentiated solutions that help maintain the flow of water in essential applications while preventing water loss" [2].
The net transaction value, after accounting for expected tax benefits of approximately $50 million, is around $240 million. This acquisition is expected to enhance Pentair's capabilities in the commercial and infrastructure sector, supporting its long-term strategic goals and sustainability targets [1].
References:
[1] https://seekingalpha.com/news/4486438-pentair-to-buy-hydra-stop-for-290m-in-cash
[2] https://www.marketscreener.com/news/pentair-announces-definitive-agreement-to-acquire-hydra-stop-ce7c51dfd18ef32c
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