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LONDON - Pentair plc (NYSE:PNR), a water solutions company with a market capitalization of $17.94 billion and strong financial health according to InvestingPro metrics, has completed its previously announced acquisition of Hydra-Stop LLC from Madison Industries for approximately $290 million, subject to customary adjustments, the company announced Thursday.
When adjusted for approximately $50 million of expected tax benefits, the net transaction value is approximately $240 million. Hydra-Stop, a provider of specialty insertion valves, line stop fittings and installation equipment for water utility service providers and municipalities in the United States, is expected to generate approximately $50 million in revenue in full year 2025 with an expected Return on Sales of approximately 30%. This acquisition comes as Pentair maintains a healthy current ratio of 1.45, indicating strong liquidity to support its expansion strategy.
"We are excited to welcome Hydra-Stop employees to Pentair as we believe their innovative water control solutions and powerful mission are uniquely aligned with our efforts to help the world sustainably move water, life’s most essential resource," said De’Mon Wiggins, Executive Vice President and President, Pentair Flow, according to the press release.
Hydra-Stop will operate within the Commercial and Infrastructure business unit of Pentair Flow’s business segment and will continue to serve customers from its current Burr Ridge, Illinois location.
The acquisition expands Pentair’s offerings in the municipal water supply space, addressing water issues resulting from population growth and aging infrastructure.
Pentair, which reported revenue of approximately $4.1 billion in 2024, provides residential, commercial, and industrial water solutions. The company employs approximately 9,750 people globally and serves customers in more than 150 countries. With a 50-year track record of consistent dividend payments and nine analysts recently revising earnings estimates upward, Pentair shows strong fundamental indicators. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.
In other recent news, Pentair plc has announced a definitive agreement to acquire Hydra-Stop LLC for approximately $290 million in cash. The transaction is expected to close by the end of 2025, with the net value of the deal being around $240 million after considering anticipated tax benefits of $50 million. Additionally, Pentair reported strong second-quarter 2025 results, leading to an upward revision of its full-year guidance. Analysts have responded to these developments with varying opinions. Stifel reiterated its Buy rating on Pentair, maintaining a price target of $125. Mizuho also raised its price target to $122, citing solid quarterly results despite a challenging operating environment. On the other hand, TD Cowen downgraded Pentair from Buy to Hold, lowering its price target to $110 due to concerns about the company’s growth prospects. These recent developments highlight the mixed analyst sentiment surrounding Pentair’s future performance.
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