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Get filing alertsFerguson to acquire FloWorks for $1.6B, adding $1B in industrial flow control revenue
Filed July 13, 2026 · Period ending July 13, 2026 · ~2 min read
Key Changes
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Ferguson entered a definitive agreement to acquire FloWorks (FWI Holdings) for $1.6B enterprise value in cash, adding ~$1B in 2025 revenue from industrial valve and flow control distribution across 60+ U.S. and Canadian locations.
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The acquisition expands Ferguson's total addressable market to $400B (from $340B) and increases exposure to growth sectors including datacenters, semiconductors, power generation, and pharmaceuticals.
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Ferguson expects ~$45M in synergies from revenue opportunities and cost optimization, yielding a 10x LTM Adjusted EBITDA multiple including synergies and immediate Adjusted EPS accretion before one-time costs.
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Ferguson expects to remain within its 1-2x net debt to adjusted EBITDA target range upon closing; J.P. Morgan is providing committed financing. Transaction expected to close in Q3 2026 subject to regulatory approvals.
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FloWorks brings 65+ years of flow control expertise, 1,000+ associates, 25 service and repair centers, and a portfolio of 15 brands serving chemicals, refining, and other technical industries with significant recurring MRO revenue.
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Summary
Ferguson announced a definitive agreement to acquire FloWorks, a leading industrial distributor of valves and flow control solutions, for $1.6 billion in cash. FloWorks generated approximately $1 billion in 2025 revenue and operates more than 60 locations across the U.S. and Canada, serving highly technical industries including chemicals, refining, power generation, semiconductors, pharmaceuticals, and datacenters.
The acquisition expands Ferguson's addressable market from $340 billion to $400 billion and deepens its capabilities in specialty industrial flow control, a segment with significant recurring maintenance and repair revenue. Ferguson expects approximately $45 million in synergies from revenue opportunities across its customer base and cost savings from network optimization, logistics, and technology integration.
The transaction represents a 10x LTM Adjusted EBITDA multiple including synergies and is expected to be immediately accretive to Adjusted EPS before one-time transaction and integration costs. Ferguson expects to remain within its 1-2x net debt to adjusted EBITDA target range upon closing, with committed financing from J.P. Morgan. The deal is expected to close in the third quarter of 2026, subject to customary regulatory approvals. For retail investors, this is a material bolt-on acquisition that adds scale in industrial distribution and increases Ferguson's exposure to secular growth markets including datacenters and semiconductors. The $1.6 billion price tag represents Ferguson's largest disclosed acquisition in recent years and signals confidence in the industrial flow control market's growth trajectory. The expected synergies and immediate accretion suggest Ferguson sees clear integration opportunities, though execution risk remains until the deal closes and integration progresses.
Section-by-Section Diff
Event · Exhibit 99.1
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Ferguson expects to realize significant revenue synergies as well as certain cost synergies from network optimization, logistics and technology. The total consideration represents an acquisition multiple of approximately 10x LTM Adj. EBITDA, including expected synergies of approximately $45 million.
Ferguson expects approximately $45 million in synergies from the acquisition, including revenue synergies across multiple non-residential customer groups and cost synergies from network optimization, logistics and technology. The transaction represents an acquisition multiple of approximately 10x LTM Adjusted EBITDA including these expected synergies. The acquisition is expected to be immediately accretive to Adjusted EPS before one-off transaction and integration costs.
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FloWorks generated 2025 revenues of approximately $1 billion. Based in Houston, the company holds a 65+ year legacy as a leading flow control distributor with more than 60 locations in the United States and Canada serving highly technical industries including chemicals, refining, power generation, semiconductors, pharmaceuticals and datacenters.
FloWorks is a 65-year-old company based in Houston with approximately $1 billion in 2025 revenues. The company operates more than 60 locations in the United States and Canada, primarily along the Gulf Coast and across the southern United States, and is backed by more than 1,000 associates, 25 service and repair centers, and a portfolio of 15 brands. The acquisition will expand Ferguson's specialty industrial flow control platform, adding technical depth and significant recurring MRO-driven revenue.
Event · Item 7.01 — Regulation FD Disclosure
Ferguson announces definitive agreement to acquire FWI Holdings, Inc.
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Ferguson Enterprises Inc. issued a press release announcing that it has entered into a definitive agreement to acquire FWI Holdings, Inc.
Ferguson has entered into a definitive agreement to acquire FWI Holdings, Inc. The 8-K does not disclose transaction terms, purchase price, financing details, expected closing date, or strategic rationale for the acquisition.
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