Pentair Closes $1.4 Billion Taco Group Holdings Acquisition

Pentair plc (PNR ) said on October 1, 2026 that it has completed its acquisition of Taco Group Holdings for $1.4 billion, subject to customary adjustments. Taco is described in the announcement as a leader in hydronic and water-based solutions.

Pentair said the transaction is expected to accelerate its growth strategy and expand its portfolio of smart, sustainable water solutions aligned to secular water trends. The company said bringing together the complementary portfolios, channels and go-to-market strategies of Pentair and Taco is expected to broaden customer access and deepen partnerships, creating cross-selling opportunities and new revenue streams.

Taco becomes part of Pentair’s Water Solutions reporting segment and will continue to go to market under the Taco brand, the company said. Taco will maintain a significant presence in Cranston, Rhode Island, as previously announced.

John L. Stauch, Pentair’s president and chief executive officer, said the company was excited to welcome the Taco team as Pentair begins what he called a new chapter of growth as a stronger company focused on delivering innovative water solutions. “Adding Taco provides us with a comprehensive suite of premier solutions and scales our position in high-growth commercial and mission-critical end-markets,” Stauch said, adding that he is confident the combined company will create an attractive growth engine and unlock profitability as it scales Taco’s business.

John Hazen White Jr., chief executive officer and owner of Taco LLC, said the closing “marks an exciting new chapter in the evolution of Taco” and will further strengthen the company’s ability to support its employees, customers and communities while creating opportunities for continued growth. Benjamin White, president of Taco LLC, called the closing an important milestone in Taco’s history and said he was pleased that Pentair chose Taco and recognized the value in the company.

Transaction Terms and Financing

Pentair entered into a definitive agreement to acquire Taco on July 28, 2026, for approximately $1.4 billion, subject to customary adjustments. The company said at the time that it expected the transaction to close in the fourth quarter of 2026, subject to customary closing conditions and necessary regulatory approvals.

Pentair stated that the purchase price represented a multiple of approximately 10.5x 2026E EBITDA, including approximately $165 million in tax benefits and approximately $30 million in anticipated run-rate cost synergies.

According to the July announcement, Taco was expected to generate approximately $540 million in revenue in fiscal year 2026, with Adjusted EBITDA margins above 20% when including expected run-rate cost synergies. Pentair described Taco as a large, high-growth business with more than $500 million in revenue and double-digit growth.

Pentair said the transaction was expected to be approximately $0.10 to $0.15 accretive to its Adjusted EPS in fiscal year 2027. The company said it expected to generate approximately $30 million in run-rate cost synergies related to supply chain and operational efficiencies, and planned to apply its Pentair Business System to realize revenue synergies through complementary channels, expanded cross-selling and greater scale.

Among the strategic benefits Pentair cited were Taco’s large installed base, which it said generates substantial ongoing demand for replacement products, maintenance and system upgrades, and complementary channels that pair Pentair’s distribution network with Taco’s manufacturer representative network. Pentair said the addition of Taco’s portfolio of pumps, valves and controls would strengthen its presence across commercial end-markets, including data centers, schools, hospitals, universities and multi-family residential.

Pentair said it expected to finance the acquisition with a combination of cash on hand and committed bridge financing, which it intended to refinance through a permanent debt issuance. The company said it expected a net leverage ratio of approximately 2.4x following the close of the transaction and expected to de-lever to below 1.5x within two years of the transaction close.

Jefferies LLC served as financial advisor to Pentair, Faegre Drinker Biddle & Reath LLP served as legal advisor, U.S. Bank National Association served as lead financing provider, and Joele Frank, Wilkinson Brimmer Katcher served as strategic communications advisor. Goldman Sachs (GS ) & Co. LLC and Doeren Mayhew Advisors served as financial advisors to Taco, and Loeb & Loeb LLP served as legal advisor.

Company Backgrounds

Founded in 1920, Taco is headquartered in Cranston, Rhode Island, with operations in North America, Europe and Asia. The company specializes in hydronic and water-driven solutions for the HVAC, plumbing and industrial sectors, offering pumps, valves, tanks, heat exchangers and advanced controls across residential, commercial, industrial and municipal markets. Pentair said Taco has built a premier brand and a track record of innovation over its more than 100-year history.

Pentair reported revenue of approximately $4.2 billion in 2025 and trades on the NYSE under the ticker symbol PNR. The company said it has approximately 9,000 employees serving customers in more than 150 countries.