Pentair to buy hydronics maker Taco for $1.4B, betting on data centres
What's the deal? PentairDealroom has a profile for this one. Try Dealroom → has agreed to acquire Taco Group Holdings, a maker of hydronic and water-based HVAC and data centre solutions, for approximately $1.4 billion, subject to customary adjustments. The all-cash price represents roughly 10.5 times Taco's estimated 2026 EBITDA, including about $165 million in tax benefits.
Who's involved? PentairDealroom has a profile for this one. Try Dealroom →, a New York-listed water solutions company, focuses on moving, improving, and treating water. Taco, a family-owned business with a more than 100-year history, makes pumps, valves, tanks, heat exchangers, and advanced controls for commercial, industrial, and residential customers.
The financials: Taco is expected to generate around $540 million in revenue in fiscal 2026, with adjusted EBITDA margins above 20% once roughly $30 million in anticipated run-rate cost synergies are included.
What's the endgame? The deal pushes PentairDealroom has a profile for this one. Try Dealroom → deeper into high-growth commercial end-markets, including data centres, schools, hospitals, and multi-family housing. It adds Taco's pumps, valves, and controls to Pentair's existing water portfolio, creating what the company calls a more comprehensive suite.
Why now? "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 chief executive officer John L. Stauch. Pentair plans to scale Taco and apply its own operating system to lift profitability.
What changes for Taco? Owner and chairman John Hazen White, Jr. and president Benjamin White said the tie-up lets the company "accelerate our growth, expand our capabilities and further invest in our innovation and technology" while preserving its values and customer relationships.
The signal: The bet reflects surging demand for water and cooling infrastructure tied to data centre buildouts and sustainability trends. By pairing its distribution network with Taco's manufacturer representative channel, Pentair is positioning for cross-selling into mission-critical markets where demand looks durable.
Read more: AP News
Image credit: COD Newsroom
