Xylem Inc., a global water technology company, has entered into an agreement to acquire the Cornell Pump and Roper Pump businesses from Indicor for $1.46 billion.
The acquisition will expand Xylem’s ability to serve a broader range of mission-critical industrial applications while supporting its strategy of increasing exposure to high-growth sectors benefiting from infrastructure investment, industrial modernisation and rising resource demands.
Xylem President and CEO Matthew Pine said the long-term demand drivers supporting the company’s business continue to strengthen, creating new opportunities across industrial markets where water is increasingly critical to operational success. He added that the acquisition will expand Xylem’s presence in key growth sectors, enhance its ability to address evolving customer requirements and strengthen its portfolio to support long-term value creation.
Expanding industrial capabilities
The Cornell Pump and Roper Pump businesses will broaden Xylem’s participation in industrial and municipal applications where customer requirements extend beyond traditional pumping needs. Their addition is expected to strengthen Xylem’s ability to serve markets where industrial modernisation and increasing operational complexity are driving greater demand for reliability, continuity and process efficiency.
The businesses provide highly engineered pumping technologies designed to handle challenging fluids, including applications involving slurry transport, solids handling and demanding suction-lift requirements. They also bring patented self-priming capabilities and specialised expertise across construction and mining, food and beverage, agriculture, energy and municipal applications.
Following completion of the transaction, the businesses will be reported within Xylem’s Water Infrastructure segment.
Transaction overview
The $1.46 billion purchase price represents approximately 11.6 times projected 2026 EBITDA, after accounting for $23 million in run-rate cost synergies and an estimated $170 million in expected tax benefits.
The businesses are expected to generate more than $260 million in revenue in 2026, with EBITDA margins exceeding 30 percent. The acquisition is also expected to be accretive to Xylem’s adjusted earnings per share in 2027.
The transaction is expected to close in the fourth quarter of 2026, subject to required regulatory approvals and other customary closing conditions.
Advisors
Centerview Partners is serving as financial advisor to Xylem, while Gibson, Dunn & Crutcher LLP is serving as its legal advisor.
Evercore Group LLC and Goldman Sachs & Co. LLC are serving as financial advisors to Indicor, with Debevoise & Plimpton LLP acting as its legal advisor.
For more information visit www.xylem.com/en-us/
