ITT Agrees to Buy Lone Star's SPX Flow in $4.8B Deal

ITT Inc. has agreed to acquire industrial equipment manufacturer SPX Flow Inc. from Lone Star Funds in a $4.775 billion cash and stock deal.

The deal will will consist of a combination of cash and $700 million in ITT common stock issued to Lone Star, according to a statement confirming an earlier report by Bloomberg News that the companies were nearing a deal.

Charlotte, North Carolina-based SPX Flow makes products including valves and pumps under brands such as APV and Johnson Pump, as well as food processing equipment such as its Gerstenberg Schröder-branded butter maker. Lone Star Funds agreed in 2021 to take SPX Flow private for $3.8 billion including debt. 

The SPX Flow acquisition is the largest ever by Stamford, Connecticut-based ITT, according to data compiled by Bloomberg. ITT’s shares have gained 28% this year, giving it a market value of $14.3 billion.

ITT’s history dates to 1920, with its genesis as International Telephone and Telegraph, a provider of telephone switching equipment and services, according to the company’s website. In 1995, that conglomerate was split into three divisions, including the company that became the current manufacturer of components and technology for a range of transportation, industrial and energy markets.