Pentair plc agreed to acquire Taco Group Holdings for about $1.4 billion, adding hydronic heating and data center cooling capabilities. The deal values Taco at about 10.5 times estimated 2026 EBITDA and is expected to close in the fourth quarter. Pentair expects the acquisition to add $0.10 to $0.15 to adjusted earnings per share in fiscal 2027.
Pentair plc agreed to acquire Taco Group Holdings for about $1.4 billion, adding hydronic heating and data center cooling capabilities as the water-solutions company pushes into faster-growing commercial end markets.
"Taco's hydronic systems and data center thermal management products complement Pentair's existing water portfolio," John L. Stauch, Pentair president and chief executive officer, said in a statement.
The purchase price represents about 10.5 times Taco's estimated 2026 EBITDA, including about $165 million in tax benefits and roughly $30 million in anticipated annual cost savings from supply chain and operational efficiencies. Taco is expected to generate about $540 million in revenue in fiscal 2026, with adjusted EBITDA margins above 20% when including the projected savings.
Pentair expects the deal to add $0.10 to $0.15 to adjusted earnings per share in fiscal 2027. The company plans to finance the acquisition with cash on hand and bridge financing, targeting a net leverage ratio of about 2.4 times after closing and below 1.5 times within two years.
Taco, based in Cranston, Rhode Island, will continue operating under its own brand as part of Pentair's Water Solutions segment. The transaction is expected to close in the fourth quarter of 2026, subject to customary regulatory approvals.
Pentair, which reported about $4.2 billion in revenue in 2025 and employs roughly 9,000 people globally, has been expanding its water solutions portfolio through acquisitions. The Taco deal gives the company exposure to the data center cooling market, a segment experiencing rapid growth as artificial intelligence workloads drive demand for thermal management infrastructure.
This article is for informational purposes only and does not constitute investment advice.
