London-based Pentair, a global leader in water solutions, has announced a definitive agreement to acquire Taco Group Holdings, the parent company of Taco Comfort Solutions, in a transaction valued at approximately $1.4 billion.
The acquisition brings together two established companies in the water and hydronics industries. Taco, a leader in hydronic and water-based solutions, is expected to generate approximately $540 million in revenue this year. Following the closing of the transaction, Taco will become part of Pentair’s Water Solutions division while continuing to market products under the well-known Taco brand.
Pentair said it plans to maintain a significant presence in Cranston, Rhode Island, where Taco has long been headquartered, while identifying approximately $30 million in expected cost synergies from the merger.
The company did not announce any plans regarding Taco’s manufacturing facility at 583 Bedford St. in Fall River.
According to the Fall River Herald News, despite the acquisition, local employment is expected to remain unchanged. Leslie Taito, Taco’s chief business operating officer, told the Herald News that the company employs 161 people at its Fall River facilities and that the sale will not affect those jobs.
“This partnership with Pentair allows us to accelerate our growth, expand our capabilities and further invest in our innovation and technology. It will also allow us to preserve our values, expertise and customer relationships, which have made Taco successful,” said John Hazen White Jr., owner and chairman of the board, and Benjamin White, president of Taco, in a joint statement.
The transaction is subject to customary regulatory approvals and closing conditions.
