Pentair plc has entered into a definitive agreement to acquire Taco Group Holdings for approximately $1.4 billion, adding one of the hydronics industry's best-known manufacturers to its growing portfolio of commercial and residential water management products.

The acquisition will significantly expand Pentair's presence in hydronic heating, HVAC and water-based mechanical systems while strengthening its position in high-growth commercial markets, including data centers, healthcare facilities, schools, universities and multifamily housing.

Taco, headquartered in Cranston, Rhode Island, is expected to generate approximately $540 million in revenue during fiscal year 2026.

Acquisition Broadens Hydronic Product Portfolio

Founded more than a century ago, Taco manufactures pumps, valves, expansion tanks, heat exchangers and advanced controls used in hydronic heating and cooling systems. The company's products serve commercial, industrial and residential applications through contractors, engineers, OEMs and distribution partners.

Pentair said adding Taco creates a more comprehensive water management platform by combining complementary product lines and engineering expertise.

"This highly strategic and value creating acquisition enhances the scale and reach of Pentair's innovative water solutions serving high-growth commercial and industrial end-markets, including HVAC and data centers," said John L. Stauch, Pentair President and CEO. "The addition of Taco will provide Pentair with a more comprehensive suite of solutions and enhanced development capabilities to benefit our customers across commercial, industrial and residential applications. We are confident in our ability to unlock significant profitability as we scale Taco, accelerate its growth across commercial markets and implement the Pentair Business System. We look forward to welcoming the Taco team to Pentair, ushering in a new chapter of growth and value creation."

Commercial and Data Center Markets Drive Growth

Pentair expects the acquisition to strengthen its exposure to sectors experiencing sustained demand for mechanical systems, particularly data centers and other mission-critical facilities where hydronic systems play an increasingly important role.

The company also sees opportunities to expand Taco's products through Pentair's distribution channels while leveraging Taco's manufacturer representative network to reach contractors, engineers, OEMs and facility owners.

In addition to commercial growth opportunities, Pentair expects to benefit from Taco's large installed base, creating recurring demand for replacement products, maintenance and system upgrades.

Pentair Targets Cost and Revenue Synergies

Pentair expects approximately $30 million in annual run-rate cost synergies through operational improvements and supply chain efficiencies. The company also anticipates additional revenue opportunities through cross-selling complementary products across both organizations.

The acquisition is expected to be approximately $0.10 to $0.15 accretive to adjusted earnings per share during fiscal year 2027.

Following the acquisition, Pentair expects its net leverage ratio to be approximately 2.4 times EBITDA, with plans to reduce leverage to below 1.5 times within two years.

Taco Brand to Continue Under Pentair

Following the transaction, Taco will become part of Pentair's Water Solutions business while continuing to operate under the Taco brand. The company also plans to maintain a significant presence in Cranston, Rhode Island.

"This partnership with Pentair allows us to accelerate our growth, expand our capabilities and further invest in our innovation and technology. It will also allow us to preserve our values, expertise and customer relationships, which have made Taco successful," said John Hazen White, Jr., Owner and Chairman of the Board, and Benjamin White, President of Taco.

The transaction is expected to close during the fourth quarter of 2026, subject to customary regulatory approvals and closing conditions.

To learn more about Taco Group, visit www.tacocomfort.com. 

To learn more about Pentair plc, visit www.pentair.com.