Ferguson Enterprises Inc. (FERG): Plans to acquire FloWorks for $1.6bn EV

Research evidence excerpt

Ferguson Enterprises Inc. (FERG): Plans to acquire FloWorks for $1.6bn EV

Equity Research

14 July 2026 | 6:24AM BST

Ferguson Enterprises Inc. (FERG): Plans to acquire FloWorks for $1.6bn

EV

Ferguson announced today (July 13th) that it plans to acquire FloWorks, an industrial Suhasini Varanasi

+44(20)7774-3722 |

distributor and service provider of highly technical valves and flow control solutions, suhasini.varanasi@gs.com

Goldman Sachs International

from Wynnchurch Capital L.P. for an EV of $1.6bn. According to FERG, the total

Harshita Bhatter, CFA

consideration represents an acquisition multiple of c.10x LTM Adj. EBITDA including +1(332)245-7830 |

expected synergies of approximately $45mn. The company expects the deal to be harshita.bhatter@gs.comGoldman Sachs India SPL

accretive to Adj. EPS immediately. The company expects to remain within a target

leverage range of 1-2x upon closing the transaction. The transaction is expected to

close in 3Q’26, subject to customary conditions and regulatory approvals.

FERG sees this acquisition expanding the company’s TAM to $400bn and helping

expand its technical capabilities in non-resi such as valves, valve automation,

specialty industrial flow control platform and service & repair offerings. FloWorks is

also exposed to attractive end markets like semi-conductors, datacenters, power

generation and pharmaceuticals. FERG expects to realize significant revenue

synergies as well as certain cost synergies from network optimization, logistics and

technology.

About FloWorks: The company generated revenues of c.$1bn in 2025, c.3% of

Ferguson’s CY2025 revenues. Based in Houston, the company is a leading flow

control distributor with more than 60 locations in the United States and Canada,