Ferguson's Strategic Flow-Control Acquisition
Ferguson to Acquire FloWorks for $1.6 Billion, Expanding Flow-Control Solutions and Market Reach
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Key Points
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FloWorks brings a 65+ year legacy in valves and flow-control solutions, with more than 60 locations across the United States and Canada.
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The deal values FloWorks at about $1.6 billion in enterprise value, estimated at roughly 10x last twelve months’ adjusted EBITDA, and includes about $45 million of expected synergies.
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J.P. Morgan is acting as Ferguson’s exclusive financial adviser, with committed financing from J.P. Morgan Chase Bank; Orrick, Herrington & Sutcliffe is advising on financing, and Kirkland & Ellis is providing financing-related counsel to Ferguson.
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The acquisition broadens Ferguson’s exposure to high-growth end-markets, including datacenters, semiconductors, power generation, and pharmaceuticals, while expanding its valve automation and service/repair capabilities and boosting recurring MRO-driven revenue.
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TipRanks notes Ferguson as North America’s largest value-added distributor of essential water-related products and services, underscoring the strategic scale of the combination.
Ferguson Enterprises has agreed to buy FloWorks for about $1.6 billion in cash, the company announced. The deal — one of Ferguson's largest acquisitions — adds more than 60 locations across the United States and Canada and roughly $1 billion in annual revenue, according to Stock Titan.
FloWorks, owned by private equity firm Wynnchurch Capital, specializes in valves, valve automation, and flow-control products. Ferguson expects the deal to close in the third quarter of 2026 and to immediately boost adjusted earnings per share, Market Screener reported.
What FloWorks Brings to Ferguson's Business
FloWorks has a 65-plus year history in flow-control solutions. It serves industrial customers who need valves, valve automation, and specialty parts to keep operations running. That type of work — called MRO, or maintenance, repair, and operations — tends to generate steady, recurring revenue, according to Quiver Quant.
The acquisition also gives Ferguson a foothold in fast-growing industries. Those include datacenters, semiconductor plants, power generation, and pharmaceutical manufacturing. These sectors are spending heavily on infrastructure right now, making them attractive long-term customers for flow-control products.
$1.6 Billion Price Tag and Expected Financial Gains
Ferguson is paying roughly 10 times FloWorks' adjusted EBITDA — a common measure of operating profit — for the business. The deal is valued at about $1.6 billion in enterprise value, Stock Titan reported. Ferguson expects around $45 million in revenue synergies once the two companies combine.
Ferguson says it will stay within its target of 1 to 2 times net debt relative to adjusted EBITDA after the deal closes. That signals the company does not plan to take on excessive debt. J.P. Morgan Chase Bank has committed financing for the transaction, with law firms Kirkland & Ellis and Orrick, Herrington & Sutcliffe providing legal counsel.
Ferguson Grows Its Addressable Market to $400 Billion
The FloWorks deal pushes Ferguson's total addressable market — the full pool of potential customers it can serve — to about $400 billion. That is a significant jump from where the company stood before. Ferguson is already North America's largest value-added distributor of water-related products and services, according to WKZO.
Adding FloWorks strengthens Ferguson's position in non-residential markets, which tend to grow faster than residential construction. The combination also expands Ferguson's service and repair business, which provides more stable revenue even when new construction slows down, LSE noted.
Wynnchurch Capital Exits After Building FloWorks Up
Wynnchurch Capital, a Chicago-based middle market private equity firm, is selling FloWorks after growing it into a national distributor. Under Wynnchurch's ownership, FloWorks expanded its network to more than 60 locations across the US and Canada and grew revenue to about $1 billion for fiscal year 2025, Stock Titan reported.
J.P. Morgan is serving as Ferguson's exclusive financial adviser on the deal. The transaction still needs regulatory approval before it can close. Ferguson has targeted the third quarter of 2026 as the expected close date, Market Screener reported.
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