Xylem Inc. has agreed to acquire a pair of pump businesses in a deal worth about $1.46 billion, company officials announced last week.
The water technology company said that the purchase of the Cornell Pump and Roper Pump businesses from Indicor would strengthen its position in both the industrial and municipal markets, as well as increase the company's exposure to “high-growth sectors” tied to infrastructure spending, industrial modernization and other factors.
The pump businesses are expected to generate more $260 million in combined revenue this year and have EBITDA margins of over 30%. The deal is expected to close in the fourth quarter of the year, subject to approval by regulators and other closing conditions.
“This acquisition expands our presence in key growth sectors and enhances our ability to help customers address evolving operational requirements,” Xylem President and CEO Matthew Pine said in a statement. “It also strengthens our portfolio in ways that support long-term value creation.”
