ITT Inc. ( ITT ) announced on Friday it has inked a definitive deal to acquire SPX FLOW from Lone Star Funds for $4.775 billion.

The cash and equity deal is valued at 14.2x its projected 2026 adjusted EBITDA or 11.5x when factoring in anticipated cost synergies.

Details

The transaction will be paid using a mix of cash and $700 million in ITT common stock issued to Lone Star.

ITT plans to finance the cash portion through a combination of debt and equity.

The deal is anticipated to be finalized by the end of the first quarter of 2026, pending standard closing conditions.

Post closure, SPX FLOW will join ITT’s Industrial Process (IP) segment, which generated revenue of around ~$1.4 billion in 2024 and $384 million in the third quarter of 2025.

The company expects to retain its investment-grade credit rating, with net leverage projected below 3.0x initially and under 2.0x roughly 18 months after closing.

Synergies & Benefits

The acquisition is expected to boost its IP segment by adding complementary flow and process technologies, enabling the company to serve high-growth markets like industrial, chemical, energy, mining, nutrition, and health & personal care.

Notably, over the 12 months ending September 27, 2025, SPX FLOW posted $1.3 billion in revenue with a ~42% gross margin, 22% adjusted EBITDA margin, and 43% of sales from the aftermarket.

ITT projects $80 million in annualized cost synergies by year three post-close.

The deal is expected to immediately boost gross and adjusted EBITDA margins, with adjusted EPS accretion in 2026 and double-digit growth anticipated in the first full year after closing, excluding intangible amortization.

As of September 27, ITT’s cash and cash equivalents stood at $516.4 million.

ITT Price Action: ITT shares were down 2.49% at $178.83 during premarket trading on Friday, according to Benzinga Pro data.

Read Next:

Why Middleby Just Sold Half Its Residential Kitchen Business