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Pentair Expands Flow Business Portfolio With Hydra-Stop Buyout
ZACKSยท 2025-09-19 16:05
Core Insights - Pentair plc (PNR) has successfully completed the acquisition of Hydra-Stop LLC from Madison Industries, enhancing its portfolio to address critical water issues in growing cities [1][3]. Acquisition Details - Hydra-Stop, a manufacturer of insertion valves and line stops, is based in Burr Ridge, Illinois, and employs 50 people. It will be integrated into Pentair Flow's business segment within the Commercial and Infrastructure unit [2][7]. - The acquisition is valued at $290 million, with a net value of approximately $240 million after accounting for $50 million in tax benefits. Hydra-Stop is expected to generate $50 million in revenues by 2025, with a return on sales of 30% [3][7]. Financial Performance - In Q2 2025, Pentair reported adjusted earnings per share of $1.39, exceeding the Zacks Consensus Estimate of $1.33 by 4.5% and marking a 14% increase from the previous year. Net sales rose 2% year-over-year to $1.123 billion, surpassing the consensus estimate of $1.115 billion [4]. - The Flow segment's net sales remained flat at $397 million compared to the prior year, while operating earnings increased by 10% year-over-year to $93 million [5]. Stock Performance - Pentair's stock has appreciated by 18.2% over the past year, significantly outperforming the industry average growth of 4.8% [6].