The deal would deepen Pentair’s exposure to HVAC, data centers and other commercial end-markets, with the company expecting the acquisition to be accretive to adjusted EPS in fiscal 2027.
Pentair said it has agreed to acquire Taco Group Holdings for approximately $1.4 billion, in a deal aimed at expanding its water-management platform and increasing exposure to high-growth end-markets including HVAC, data centers and related infrastructure. The purchase price represents about 10.5 times Taco’s estimated 2026 EBITDA, including roughly $165 million in tax benefits and about $30 million in anticipated run-rate cost synergies. Taco, a hydronic and water-based solutions provider founded in 1920, is expected to generate about $540 million in fiscal 2026 revenue with adjusted EBITDA margins above 20% when including expected run-rate cost synergies. Pentair said the transaction should be about $0.10 to $0.15 accretive to adjusted EPS in fiscal 2027. The company expects to finance the acquisition with cash on hand and committed bridge financing that it intends to refinance with permanent debt. Pentair said net leverage would be about 2.4x after closing and that it expects to de-lever to below 1.5x within two years. The deal is expected to close in the fourth quarter of 2026, subject to customary closing conditions and regulatory approvals. After closing, Taco is planned to join Pentair’s Water Solutions segment, continue operating under the Taco brand, and maintain a significant presence in Cranston, Rhode Island.