Ferguson has agreed to buy Floworks in a cash deal valuing the industrial distributor at about $1.6 billion, with the target generating roughly $1 billion in 2025 revenue.
The company said the purchase price implies about 10 times Floworks’ last-12-month adjusted EBITDA, including expected synergies of about $45 million.
Floworks brings more than 60 locations across the U.S. and Canada and adds technical capabilities in valves, valve automation, specialty flow control solutions, and service and repair. Its customer base includes chemicals, refining, power generation, semiconductors, pharmaceuticals and datacenters.
Ferguson said the acquisition expands its total addressable market to $400 billion, up from the $340 billion market it cited for its existing residential and nonresidential construction businesses.
The company also said the deal will deepen its non-residential exposure and create revenue synergies across industrial, commercial mechanical and waterworks customers.
Ferguson expects the transaction to be immediately accretive to adjusted EPS and to close in the third quarter of 2026.
On leverage, Ferguson said it expects to stay within its targeted net debt-to-adjusted EBITDA range of 1 to 2 times after closing. Today the company's shares have moved 2.17% to a price of $232.395. For more information, read the company's full 8-K submission here.
