Key Takeaways
- Sector: Industrials.
- Geography: United States.
Analysis
Lone Star Fund XI, LP through a designated affiliate has reached a definitive agreement to divest SPX FLOW, Inc. to ITT Inc. for a value of $4.775 billion in a combination of cash and stock. The transaction represents a high-profile exit for the private equity sponsor and a strategic realignment for SPX FLOW’s portfolio in a market where engineered equipment intersects with process technologies across multiple end-markets.
The U.S.-based company brings premier brands and longstanding blue-chip customer relationships along with deep technical expertise and best-in-class aftermarket services for pumps, valves, mixers and other flow and process solutions. In the trailing twelve-month period ended Sept. 27, 2025, SPX FLOW generated $1.3 billion in revenue with approximately 42% gross margin and greater than 21% EBITDA margin (22% adjusted), with 43% aftermarket sales. Upon close, SPX FLOW will join ITT’s Industrial Process (IP) segment. IP is a global leader in centrifugal and twin-screw pumps and engineered valves with ~$1.4 billion in revenue in 2024.
SPX FLOW positioned at the nexus of industrial processing, health, and nutrition markets. ITT’s bid structure—cash and stock—reflects a balanced approach to extending its process-technology platform while providing liquidity and optionality to SPX FLOW stakeholders.
ITT Inc., this move accelerates growth in core processing segments and enhances scale in high-value, engineered solutions that serve highly engineered manufacturing environments.
Lone Star Fund XI, LP continues to demonstrate the fund’s ability to select portfolios with strategic significance and to realize value through carefully sequenced exits. SPX FLOW’s operations, which span across industrial equipment and specialty processing technologies, stand to benefit from ITT’s established distribution network and industrial customer base.
Goldman Sachs & Co. LLC and UBS Investment Bank are serving as financial advisors to ITT and Paul Hastings LLP acted as legal counsel.