Ferguson to Buy FloWorks in $1.6 Billion All-Cash Deal
The acquisition adds industrial distribution capabilities and geographic reach that Ferguson plans to extend across its non-residential customer base.
Ferguson Enterprises Inc. (FERG) agreed to acquire FWI Holdings, Inc., known as FloWorks, in an all-cash transaction valued at approximately $1.6 billion. The deal is expected to close in the third quarter of 2026, subject to customary conditions and regulatory approvals.
The acquisition targets Ferguson's non-residential business, where the company has posted consistent outperformance. FloWorks brings capabilities and geographic coverage that Ferguson intends to deploy across those customer groups.
"FloWorks strengthens our leading position in high-growth industrial end markets, while adding meaningful capabilities and geographic coverage which we can leverage across our non-residential customer groups," said Kevin Murphy, CEO of Ferguson.
The deal extends a run of consistent acquisition activity at Ferguson, which invested $276 million across eight acquisitions in calendar 2025 and continued dealmaking into 2026, completing two acquisitions in the first quarter and signing three more definitive agreements. Non-residential revenue has grown at a double-digit pace in recent quarters, a trend Murphy has cited repeatedly as a driver of the company's market share gains.
The FloWorks purchase is smaller in scale than ITT Inc.'s $4.775 billion agreement to acquire SPX FLOW, announced in December 2025, but the two deals share a rationale: both buyers are consolidating fragmented flow and industrial-distribution markets by adding aftermarket-heavy, specialized capabilities to an existing platform. Ferguson's approach also echoes its own bolt-on strategy, where dozens of smaller acquisitions have added incremental revenue without disrupting its balance sheet discipline.
Ferguson enters the transaction with net debt to adjusted EBITDA of 1.0x as of its most recent quarter, giving it capacity to fund the deal in cash while continuing its share repurchase program, which included a new $2 billion authorization announced alongside first-quarter results. The company's calendar 2026 guidance, which calls for low- to mid-single-digit net sales growth and adjusted operating margin of 9.4% to 9.8%, was reaffirmed as unchanged and does not yet reflect the pending FloWorks acquisition.