Ferguson expands with acquisitions in North America

NEWPORT NEWS, Va. - Ferguson Enterprises, Inc. (NYSE:FERG; LSE:FERG), a major distributor in the North American construction market, has completed the acquisition of Independent Pipe & Supply Corp. and National Fire Equipment Ltd. and National Fire Fabrication Ltd., enhancing its commercial plumbing and fire & fabrication businesses.

Independent Pipe & Supply, based in Canton, MA, is a distributor of pipe, valves, and related products, with a network of eight locations in the Northeast. This acquisition, which closed on March 31, 2025, bolsters Ferguson’s presence and fabrication services in New England.

National Fire, headquartered in Toronto, ON, is recognized as a market leader in fire protection products and services, operating seven locations across Canada, including two fabrication facilities. The acquisition, finalized on April 14, 2025, aims to advance Ferguson’s Fire & Fabrication customer group strategy in Canada. National Fire will be integrated into Ferguson’s Canadian subsidiary, Wolseley Canada.

Ferguson’s CEO Kevin Murphy stated that these acquisitions are intended to leverage the company’s scale locally, enhancing its service offerings in the Northeast U.S. and Canada. The company anticipates that the new additions will bring valuable customer relationships and skilled associates to support future growth.

Over the past five years, Ferguson has executed approximately 50 acquisitions, which have been a significant component of its growth strategy. The company operates in a fragmented market with over 10,000 small to medium-sized independent companies in North America. InvestingPro analysis shows Ferguson maintains a strong financial health score of GOOD, operating with moderate debt levels and liquid assets exceeding short-term obligations. Discover more insights about Ferguson’s growth potential and 6 additional ProTips with an InvestingPro subscription.

With headquarters in Newport News, VA, Ferguson reported sales of $29.6 billion for the fiscal year 2024 and employs roughly 35,000 associates across nearly 1,800 locations. The company provides a wide range of products and services from plumbing, HVAC, and lighting to more specialized solutions.

The information in this article is based on a press release statement. Forward-looking statements within the press release are subject to risks and uncertainties that could affect actual outcomes. Ferguson has stated that it does not undertake any obligation to update forward-looking statements except as required by law. For comprehensive analysis and detailed insights into Ferguson’s valuation and future prospects, access the full Pro Research Report, available exclusively on InvestingPro, along with in-depth research reports for 1,400+ other top stocks.

In other recent news, Ferguson Plc reported its second-quarter earnings for fiscal year 2025, revealing a miss on both earnings per share (EPS) and revenue forecasts. The company posted an EPS of $1.52, falling short of the expected $1.99, while revenue came in at $6.9 billion, below the anticipated $7.09 billion. Following these results, several financial firms revised their outlooks on Ferguson. Morgan Stanley reduced its price target to $195 from $204, maintaining an Overweight rating, while RBC Capital Markets adjusted its price target to $189 from $211 but kept an Outperform rating.

Truist Securities also revised its price target for Ferguson to $200 from $230, continuing with a Buy rating, and UBS adjusted its target to $173 from $193, maintaining a Neutral stance. Analysts from these firms noted challenges such as commodity deflation and a softer margin outlook impacting Ferguson’s financial performance. Despite these pressures, some analysts remain optimistic about Ferguson’s long-term potential, citing solid volume growth and strategic market positioning. Ferguson continues to focus on its expansion in the HVAC and Waterworks sectors, aiming for improved pricing dynamics in the second half of the fiscal year. These developments reflect the ongoing adjustments in financial expectations for Ferguson amidst challenging market conditions.

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