Pentair Expands Water Solutions and Data Center Cooling with USD 1.4B Taco Acquisition

In July 2026, Pentair agreed to acquire Taco Group Holdings for approximately USD 1.4 billion, expanding its water solutions segment into high-growth HVAC and data center infrastructure. Pentair will buy Taco for a price based on 10.5 times its 2026 EBITDA, factoring in tax benefits and cost synergies. The deal is set to close in late 2026, keeping the Taco brand and adding its pumps to Pentair's 2027 revenue.

Century of Innovation Meets Modern Scale

Pentair is acquiring Taco, a leader in sustainable hydronic and water-based HVAC solutions, to enhance its portfolio and target high-growth markets in North America. With over 100 years of experience, Taco offers a range of pumps, valves, and advanced controls and is expected to generate around USD 540 million in revenue by fiscal year 2026, achieving Adjusted EBITDA margins above 20% due to anticipated cost synergies.

Pentair President and CEO John L. Stauch highlighted that this acquisition will expand their innovative water solutions across commercial and industrial sectors. Taco’s Owner and Chairman, John Hazen White, Jr., expressed that the partnership will accelerate growth and maintain Taco's core values and customer relationships.

The transaction is planned to close in the fourth quarter of 2026, subject to regulatory approvals. Pentair will fund the acquisition with cash and bridge financing and intends to integrate Taco within its Water Solutions segment while retaining its brand and presence in Cranston, Rhode Island.

Why This Deal Matters

• Strengthens Market Presence: Acquiring Taco’s pumps, valves, and controls enhances Pentair’s footprint in high-growth commercial markets, including data centers and healthcare facilities, aligning with water and sustainability trends.
• Comprehensive Water Solutions: Integrating Taco’s offerings with Pentair’s existing solutions creates a robust suite for commercial and residential customers, leveraging both companies’ innovation capabilities for new market solutions.
• Enhanced Cross-Selling Opportunities: Merging Pentair’s distribution network with Taco’s representation opens new growth channels, improving access to OEMs, distributors, and contractors across various sectors.
• Durable Aftermarket Opportunities: Taco’s large installed base provides ongoing demand for replacement and maintenance products, expanding Pentair’s access to these revenue streams.
• Cost and Revenue Synergies: The transaction is projected to be accretive to Adjusted EPS by USD0.10 to USD0.15 in 2027, with anticipated USD30 million cost synergies from supply chain efficiencies.
• Strong Financial Position: Post-transaction, Pentair expects a net leverage ratio of 2.4x, aiming to reduce it to below 1.5x within two years, while maintaining flexibility for growth investments and continued shareholder returns, including dividend growth for over 50 years.

Impact on ICT Industry

This strategic acquisition positively impacts the ICT industry by scaling mission-critical thermal management and water-based cooling infrastructure crucial for modern high-density data centers.

As advanced data center cooling integrates high-performance hardware like pumps and valves into mission-critical ICT real estate. It accelerates energy efficiency in large-scale server farms leveraging water-based climate control and consolidates supply chains to streamline the availability of liquid-cooling tools for growing technology hubs.

This technology further addresses cooling capacity bottlenecks by handling extreme thermal limits for AI and cloud computing. It scales rapidly, leveraging global manufacturing strength and ensures sustained reliability through a large aftermarket base that mitigates downtime risks for continuous ICT operations.

Impact of the Data Center Valves Industry

The global data center valves market size accounted for USD 1.10 billion in 2025 and is predicted to increase from USD 1.25 billion in 2026 to approximately USD 4.04 billion by 2035, expanding at a CAGR of 13.90% from 2026 to 2035.

According to Precedence Research, this acquisition impacts the industry by merging Taco's specialized thermal and fluid control portfolio, such as pumps, valves, and advanced controls, with Pentair's extensive water management network, positioning the combined entity to capitalize heavily on the global market.

Integrated liquid cooling not only combines valves and pumps into holistic thermal loops to support high-density AI workloads, but also enhances automated flow control and optimizes real-time cooling efficiency. This approach also improves production scaling and overcomes challenges by using global purchasing power to shorten supply chains and bridge gaps in fragmented and specialized portfolios.

This strategy further overcomes industry constraints by pooling financial resources and research and development capabilities, allowing for the rapid development of advanced thermal management technology. These improvements directly address the demands of modern and high-heat data centers.

About Pentair

Founded in 1966, Pentair is a global water treatment and fluid management company that offers sustainable water solutions for residential, commercial, industrial, and agricultural users. The company designs and distributes innovative products to help customers move, improve, and enjoy water efficiently.

Pentair organizes its portfolio into three main segments, including pool equipment like energy-efficient pumps, water Solutions for filtration and softeners, and flow technologies for industrial fluid management. Its overall goal is to promote sustainable water management and reduce environmental footprints.

About Taco

Founded in 1920 in Cranston, Rhode Island, TACO Comfort is a global manufacturer specializing in hydronic and water-driven equipment for residential, commercial, and industrial use. The company builds high-efficiency circulators, variable-speed pumps, valves, expansion tanks, heat exchangers, and electronic system controls.

The company aims to optimize energy efficiency and indoor comfort through sustainable performance hardware. It also encourages customers with digital tools like Project Builder for system sizing, further supported by technical training and guidance.