Cornell Pump and Roper Pump acquired by Xylem

Securing projected 2026 revenues exceeding $260m alongside an EBITDA margin above 48.5%, Xylem has signed a definitive agreement to acquire the Cornell Pump and Roper Pump businesses from Indicor. Announced in August 2026, this carve-out separates the two specialized manufacturing units from their parent holding, which is currently controlled by the private equity firm Clayton, Dubilier & Rice. The transaction sets an explicit enterprise value of $1–10bn, representing a multiple of 10x–18x the projected 2026 EBITDA. The acquiring board projects the transaction to become accretive to adjusted earnings per share by the 2027 fiscal cycle. Strategically, this acquisition executes a deliberate mandate to increase the buyer's direct exposure to heavy industrial sectors undergoing rapid modernization and infrastructure investment. Upon formal completion, the newly acquired assets will be fully consolidated into the acquirer's established Water Infrastructure reporting segment. To navigate this complex divestment, which occurs in parallel with Ametek's separate $5 billion acquisition of the remaining Indicor platform, the buyer mandated Centerview Partners—led by Justin Katz and Gayle Turk—to provide financial advisory services. Legal structuring for the acquirer was managed by a Gibson, Dunn & Crutcher team featuring Saee Muzumdar and Elizabeth Romefelt, alongside internal M&A counsel Gary R. Ross and Hannah Offerle. Conversely, the selling entity retained a dual financial advisory consortium comprising Evercore, fielding a team including Paul Stefanick, Thomas Stokes, and Daniel Levy, and Goldman Sachs, represented by Katrien Carbonez and Hamish Douglas. Sell-side legal perimeters were strictly defined by Debevoise & Plimpton partners Uri Herzberg, Benjamin P. Collins-Wood, and Spencer K. Gilbert. Subject to the receipt of mandatory regulatory approvals and antitrust clearances, the definitive transfer of ownership is formally scheduled to conclude during the fourth quarter of 2026.