Pentair To Acquire Hydra-Stop In $290M Deal

Pentair PLC (PNR) has agreed to acquire Hydra-Stop LLC, a specialist in valve solutions, for $290 million in cash. The deal, which includes an estimated $50 million in tax benefits, brings the net value of the transaction to approximately $240 million.

Pentair plans to integrate Hydra-Stop into its Commercial and Infrastructure division, which falls under the company’s broader Flow business segment. The transaction is expected to wrap up by the end of 2025.

Pentair stock inched lower by 0.5% in Monday’s premarket. On Stocktwits, retail sentiment remained in ‘neutral’ territory with ‘low’ message volume.

“This strategic acquisition will help accelerate our growth initiatives for our commercial and infrastructure business by supporting municipalities and their service providers in addressing critical water issues through differentiated solutions that help maintain the flow of water in essential applications while preventing water loss,” said De’Mon Wiggins, Executive Vice President and President, Pentair Flow.

Hydra-Stop, based in Burr Ridge, Illinois, is known for its expertise in insertion valves and line-stop technology. With nearly all of its sales coming from the U.S. market, the company is projected to earn around $50 million in revenue by 2025, with an estimated 30% return on sales. 

Pentair’s second-quarter (Q2) revenue increased 2% year-on-year (YoY) to $1.12 billion, matching the analysts’ consensus estimate, as per Fiscal AI data. Adjusted earnings per share (EPS) of $1.39 also surpassed the consensus estimate of $1.34. 

Pentair stock has gained over 4% year-to-date and over 23% in the last 12 months. 

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