• Enhances Publicity to Enticing, Excessive-Progress Finish-Markets Throughout Mission-Crucial Purposes, Together with HVAC, Information Facilities and Associated Infrastructure Buildout
• Extremely Complementary Capabilities Create a Extra Complete Water-Administration Platform with an Expanded Suite of Options Aligned with Secular Mega Tendencies
• Anticipated to be ~$0.10 to $0.15 Accretive to Adjusted EPS in Fiscal Yr 2027
• Massive, Excessive-Progress Enterprise with Extra Than $500 Million in Income, Double-Digit Progress and EBITDA Margins Above 20%, Together with Run-Price Value Synergies
• Creates Compelling Income Synergies
• Firm to Host Convention Name Right now, at 9:00 AM ET to Talk about Transaction and Second Quarter 2026 Monetary Outcomes

Pentair plc (NYSE: PNR), a frontrunner in serving to the world sustainably transfer, enhance, and revel in water, life’s most important useful resource, right now introduced that it has entered right into a definitive settlement to accumulate Taco Group Holdings (Taco), a frontrunner in hydronic and water-based options, for about $1.4 billion topic to customary changes. The acquisition value represents a a number of of roughly 10.5x 2026E EBITDA, together with roughly $165 million in tax advantages and roughly $30 million in anticipated run-rate price synergies.

The acquisition of Taco expands Pentair’s portfolio of good, sustainable water options to assist elevated publicity to key high-growth end-markets primarily in North America. Taco is a number one supplier of progressive, sustainable and high-performance hydronic and water-based HVAC and knowledge middle options. Over its greater than 100-year historical past, Taco has established a premier model, observe file of innovation and a complete portfolio of industry-leading pumps, valves, tanks, warmth exchangers and superior controls. Taco serves a various buyer base in business, industrial and residential end-markets. Taco is anticipated to generate roughly $540 million in income in fiscal yr 2026, with Adjusted EBITDA margins above 20% when together with anticipated run-rate price synergies.

“This extremely strategic and worth creating acquisition enhances the size and attain of Pentair’s progressive water options serving high-growth business and industrial end-markets, together with HVAC and knowledge facilities,” mentioned John L. Stauch, Pentair President and CEO. “The addition of Taco will present Pentair with a extra complete suite of options and enhanced growth capabilities to learn our clients throughout business, industrial and residential functions. We’re assured in our skill to unlock important profitability as we scale Taco, speed up its development throughout business markets and implement the Pentair Enterprise System. We stay up for welcoming the Taco crew to Pentair, ushering in a brand new chapter of development and worth creation.”

“This partnership with Pentair permits us to speed up our development, increase our capabilities and additional put money into our innovation and expertise. It can additionally enable us to protect our values, experience and buyer relationships, which have made Taco profitable,” mentioned John Hazen White, Jr., Proprietor and Chairman of the Board, and Benjamin White, President of Taco.

Key Strategic and Monetary Advantages of the Transaction

• Scales Pentair’s Place in Enticing, Excessive-Progress Business and Mission-Crucial Finish-Markets: The addition of Taco’s portfolio of pumps, valves and controls will strengthen Pentair’s presence throughout business end-markets, together with knowledge facilities, faculties, hospitals, universities in addition to multi-family residential. The sustained demand for these mission-critical options is supported by secular water and sustainability developments, advancing Pentair’s strategic priorities and establishing a extremely enticing and diversified development engine.
• Broadens Pentair’s Water-Administration Platform with a Complete Suite of Options: Combining Pentair’s current portfolio of progressive water options with Taco’s complementary capabilities in pumps, valves, controls and hydronic programs will create a extra complete providing of premier options for business, infrastructure and residential clients. Additional, Pentair’s innovation engine mixed with Taco’s growth capabilities creates important alternatives to develop new options throughout markets that meet buyer wants.
• Offers Significant Cross-Promote Alternatives by way of Complementary Channels and Go-to-Market Technique: Bringing collectively Pentair’s distribution community and Taco’s producer consultant community creates new channel alternatives which are anticipated to speed up development. Pentair expects to learn from broader buyer entry and deeper partnerships throughout business, industrial and residential end-markets. The Firm expects producer representatives to offer extra alternatives with OEMs, distributors, contractors, engineers, and finish customers.
• Massive Put in Base Broadens Pentair’s Entry to Sturdy Aftermarket Income Streams: Taco advantages from a big put in base that generates substantial ongoing demand for alternative merchandise, upkeep and system upgrades. The transaction will increase Pentair’s entry to those sturdy aftermarket alternatives, supporting sustained development and deeper buyer relationships.
• Creates Compelling Value and Income Synergy Alternatives: The transaction is anticipated to be roughly $0.10 to $0.15 accretive to Adjusted EPS in fiscal yr 2027. Pentair expects to generate roughly $30 million in run-rate price synergies associated to produce chain and operational efficiencies. The Firm will apply its Pentair Enterprise System to appreciate income synergies by way of complementary channels, expanded cross-selling and higher scale.
• Maintains Stable Monetary Place and Flexibility to Execute Balanced Capital Allocation Priorities: Pentair expects to have a internet leverage ratio of roughly 2.4x following the shut of the transaction and expects to de-lever to <1.5x inside two years of the transaction shut. Pentair’s robust stability sheet and sturdy money flows will create ample flexibility to proceed to put money into key development initiatives whereas constructing on its observe file of shareholder returns, together with its greater than 50 years of rising its dividend.

Transaction Particulars

The transaction is anticipated to shut within the fourth quarter of 2026, topic to customary closing situations and vital regulatory approvals.

Pentair expects to finance the acquisition with a mix of money available and dedicated bridge financing, which Pentair intends to refinance by way of a everlasting debt issuance.

Upon completion of the transaction, Taco is deliberate to be part of Pentair’s Water Options reportable section, and it’s anticipated to proceed to go-to-market beneath the Taco model. Taco will keep a big presence in Cranston, Rhode Island.

Second Quarter 2026 Earnings Outcomes and Investor Name

In a separate press launch issued right now, Pentair reported its second quarter 2026 earnings outcomes. Pentair President and Chief Government Officer John L. Stauch and Interim Government Vice President and Chief Monetary Officer Robert P. Fishman will focus on the Firm’s second quarter 2026 outcomes and the acquisition of Taco Group Holdings on a convention name with buyers at 9:00 a.m. Japanese right now.

A dwell audio webcast of the decision, together with the associated presentation, might be accessed within the Investor Relations part of the Firm’s web site, www.pentair.com, shortly earlier than the decision begins.

Jefferies LLC is serving as monetary advisor to Pentair, Faegre Drinker Biddle & Reath LLP is serving as authorized advisor, U.S. Financial institution Nationwide Affiliation is serving as lead financing supplier, and Joele Frank, Wilkinson Brimmer Katcher is serving as strategic communications advisor. Goldman Sachs & Co. LLC and Doeren Mayhew Advisors are serving as monetary advisors to Taco, and Loeb & Loeb LLP is serving as authorized advisor.

About Pentair plc

At Pentair, we assist the world sustainably transfer, enhance, and revel in water, life’s most important useful resource. From our residential and business water options, to industrial water administration and all the pieces in between, Pentair is a core massive cap worth S&P 500 fairness inventory centered on good, sustainable water options that assist our planet and other people thrive.

Pentair had income in 2025 of roughly $4.2 billion, and trades beneath the ticker image PNR. With roughly 9,000 international workers serving clients in additional than 150 international locations, we work to assist enhance lives and the surroundings world wide. To be taught extra, go to www.pentair.com.

About Taco Group Holdings

Based in 1920, Taco is a market chief in hydronic and water-driven options, specializing in offering progressive, sustainable, and high-performance merchandise for the HVAC, plumbing, and industrial sectors. With a legacy of over 100 years, Taco serves markets together with residential, business, industrial, municipal, and extra, providing a complete vary of merchandise like pumps, valves, tanks, warmth exchangers, and superior controls. Taco is acknowledged for its unwavering dedication to buyer success, offering knowledgeable steerage, coaching, and unmatched assist by way of each engagement. Headquartered in Cranston, RI, with operations in North America, Europe, and Asia, Taco delivers industry-leading merchandise and options backed by a tradition of collaboration, reliability, and integrity. Taco’s mission is to redefine worth for purchasers by making certain their success with cutting-edge applied sciences, sustainable options, and a “no excuses” strategy to service. Taco is proud to be the trusted accomplice for wholesalers, contractors, engineers, and OEMs in search of reliable, cost-effective options that make a optimistic influence on folks and the planet. For extra info, go to www.tacoinc.com.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This launch incorporates statements that we imagine to be “forward-looking statements” throughout the which means of the Personal Securities Litigation Reform Act of 1995. All statements, aside from statements of historic truth, are forward-looking statements. With out limitation, any statements preceded or adopted by or that embrace the phrases “targets,” “plans,” “believes,” “expects,” “intends,” “will,” “doubtless,” “could,” “anticipates,” “estimates,” “tasks,” “ought to,” “would,” “might,” “positioned,” “technique,” or “future” or phrases, phrases, or phrases of comparable substance or the unfavourable thereof are forward-looking statements. All statements made in regards to the anticipated acquisition of Taco (the “Acquisition”), together with the anticipated time for finishing the Acquisition, the anticipated monetary outcomes of the acquired enterprise and the anticipated advantages of the Acquisition, and statements about our anticipated monetary outcomes on account of the Acquisition are forward-looking statements. These forward-looking statements usually are not ensures of future efficiency and are topic to dangers, uncertainties, assumptions and different components, a few of that are past our management, which might trigger precise outcomes to vary materially from these expressed or implied by such forward-looking statements. These components embrace our skill to shut and fund the Acquisition on the anticipated phrases and time schedule, together with acquiring regulatory approvals and satisfying different closing situations; our skill to combine the Acquisition efficiently; our skill to retain clients and workers of the acquired enterprise; the general international financial and enterprise situations impacting our enterprise, together with the energy of housing and associated markets and situations referring to worldwide hostilities; provide, demand, logistics, competitors and pricing pressures associated to and within the markets we serve; the power to attain the advantages of our restructuring plans, price discount initiatives and Transformation Program; the influence of uncooked materials, logistics and labor prices and different inflation; volatility in foreign money trade charges and rates of interest; failure of markets to simply accept new product introductions and enhancements; the power to efficiently determine, finance, full and combine acquisitions; dangers related to working overseas companies; the influence of seasonality of gross sales and climate situations; our skill to adjust to legal guidelines and rules; the influence of modifications in legal guidelines, rules and administrative coverage, together with those who restrict U.S. or overseas tax advantages or influence commerce agreements and tariffs; the result of litigation and governmental proceedings; and the power to attain our long-term strategic working and sustainability targets and targets. Further info regarding these and different components is contained in our filings with the U.S. Securities and Trade Fee, together with our Annual Report on Kind 10-Ok for the yr ended December 31, 2025. All forward-looking statements, together with all monetary forecasts, converse solely as of the date of this launch. Pentair assumes no obligation, and disclaims any obligation, to replace the data contained on this launch.