Pentair, known for its leadership in sustainable water management, has entered into a definitive agreement to acquire Hydra-Stop, a highly regarded producer of specialty valve solutions. The deal is valued at approximately $290 million in cash, with customary adjustments to follow. After factoring in anticipated tax benefits of around $50 million, the net value of the transaction is expected to be approximately $240 million.
Hydra-Stop operates in Burr Ridge, Illinois, and specializes in the manufacture of insertion valves and line stops. The company employs over 50 individuals and is primarily focused on the U.S. market, with around 99% of its sales generated domestically. For the fiscal year 2025, Hydra-Stop is projected to achieve approximately $50 million in revenue, boasting a Return on Sales of about 30%. This strong financial outlook emphasizes Hydra-Stop’s position as a key player in its industry.
Upon the successful completion of the acquisition, Pentair intends to integrate Hydra-Stop into its Commercial and Infrastructure business unit within the Pentair Flow business segment. This strategic move is expected to enhance Pentair’s portfolio by leveraging Hydra-Stop’s innovative valve solutions, further strengthening its commitment to providing sustainable and efficient water management solutions.
The acquisition is expected to close by the end of 2025, subject to customary closing conditions, including receipt of the necessary regulatory approvals. This agreement marks a significant milestone for Pentair as it continues to expand its capabilities and offerings in the water solutions sector, ultimately contributing to a more sustainable future for global water management.
KEY QUOTE:
“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. We believe the Hydra-Stop culture and priorities are highly aligned with our efforts to help the world sustainably move water, life’s most essential resource, and look forward to welcoming the Hydra-Stop employees to Pentair.”
De’Mon Wiggins, Executive Vice President and President, Pentair Flow
