ITT to Acquire SPX FLOW for $4.775 B, Expanding Its Industrial Footprint

ITT Inc. (NYSE: ITT), a global leader in highly engineered critical components, announced on December 5, 2025 that it has signed a definitive agreement to acquire SPX FLOW, a prominent provider of flow‑ and process‑technology equipment, for a total consideration of USD 4.775 billion in cash and equity. The deal values SPX FLOW at approximately 14.2 times its projected 2026 adjusted EBITDA, or 11.5 times when factoring in expected cost synergies. In the trailing 12 months as of September 27, 2025, SPX FLOW generated about USD 1.3 billion in revenue, with gross margins around 42% and an adjusted EBITDA margin near 22%; 43% of those sales came from aftermarket services. By adding SPX FLOW, ITT expands its reach beyond core industrial and energy markets into strong adjacencies like health, nutrition, chemicals, mining, and personal care — increasing its ability to deliver complex pump, valve, mixer, and flow‑technology solutions at scale. Post‑close, SPX FLOW will be integrated into ITT’s Industrial Process segment, which itself produced around USD 1.4 billion in revenue in 2024. ITT projects roughly USD 80 million in annual cost synergies within three years of closing. The acquisition is expected to be immediately margin accretive and deliver adjusted EPS growth starting in 2026, with double‑digit EPS gains anticipated in the first full year after the transaction (excluding intangible amortization). The transaction — backed by both cash and approximately USD 700 million in newly issued ITT common stock — is structured with financing through committed debt and equity, keeping ITT’s investment‑grade credit rating intact, with net leverage expected to fall below 3× initially and under 2× within 18 months post‑close. Regulatory approvals and customary closing conditions remain, with full completion expected by the end of Q1 2026. #MergersAndAcquisitions #IndustrialEquipment #ITT #SPXFLOW #SlimScan #GrowthStocks #CANSLIM