Xylem Inc. (NYSE: XYL), a leading global water technology company dedicated to solving the world’s most challenging water issues, today announced that it has entered into an agreement to acquire the Cornell Pump and Roper Pump businesses from Indicor for $1.46 billion.

The acquisition expands Xylem’s ability to serve a broader range of mission-critical industrial applications while advancing its strategy to increase exposure to high-growth sectors benefiting from infrastructure investment, industrial modernization and growing resource demands.

“The long-term demand drivers supporting our business continue to strengthen, creating new opportunities across industrial markets where water is increasingly critical to operational success,” said Matthew Pine, President and CEO of Xylem. “This acquisition expands our presence in key growth sectors and enhances our ability to help customers address evolving operational requirements. It also strengthens our portfolio in ways that support long-term value creation.”

Expanding Industrial Capabilities

The Cornell Pump and Roper Pump businesses broaden Xylem’s participation in industrial and municipal applications where customer requirements extend beyond traditional pumping needs. This portfolio extension expands Xylem’s ability to serve sectors where industrial modernization and increasing complexity are driving stronger requirements for reliability, operational continuity and process efficiency, making specialized technologies and application expertise increasingly critical.

The businesses add highly engineered pumping technologies designed to move fluids that are more difficult to handle, including applications involving slurry transport, solids handling and demanding suction-lift requirements. They also bring patented self-priming capabilities and specialized expertise developed in construction and mining, food and beverage, agriculture, energy, and municipal applications. The businesses will be reported in Xylem’s Water Infrastructure segment.

Transaction Overview1

The purchase price of $1.46 billion represents approximately 11.6x 2026 projected EBITDA after run-rate cost synergies of $23 million and an estimated $170 million of expected tax benefits. The businesses are expected to generate greater than $260 million in revenue in 2026 with EBITDA margins in excess of 30%.

The acquisition is expected to be accretive to Xylem’s adjusted earnings per share in 2027.

The transaction, which is expected to close in the fourth quarter of 2026, is subject to the receipt of required regulatory approvals and other customary closing conditions.

Advisors

Centerview Partners is serving as financial advisor and Gibson, Dunn & Crutcher LLP is serving as legal advisor to Xylem. Evercore Group LLC and Goldman Sachs & Co. LLC are serving as financial advisors and Debevoise & Plimpton LLP is serving as legal advisor to Indicor.

About Xylem

Xylem (XYL) is a Fortune 500 global water solutions company that empowers customers and communities to build a more water-secure world. Our 22,000 employees delivered revenue of $9 billion in 2025, optimizing water and resource management with innovation and expertise. Join us at www.xylem.com and Let’s Solve Water.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Generally, the words “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “contemplate,” “predict,” “forecast,” “likely,” “believe,” “target,” “goal,” “will,” “could,” “would,” “should,” “potential,” “may” and similar expressions or their negative, may, but are not necessary to, identify forward-looking statements.

Such forward-looking statements, including those regarding the timing, consummation and anticipated benefits of the transaction described herein, involve risks and uncertainties. The experience and results of Xylem and the Cornell Pump and Roper Pump businesses may differ materially from the experience and results anticipated in such statements. The accuracy of such forward-looking statements is subject to a number of risks, uncertainties and assumptions including, but not limited to, the following factors: the risk that the conditions to the closing of the transaction are not satisfied, including the risk that required approvals from regulators are not obtained; our ability to obtain financing needed to consummate the transaction; uncertainties as to the timing of the consummation of the transaction and the ability of each party to consummate the transaction; the risk that the proposed transaction disrupts the current plans or operations of Xylem or the Cornell Pump and Roper Pump businesses; litigation relating to the transaction; the risk of loss of key employees of the acquired businesses; competitive responses to the proposed transaction; potential adverse reactions or changes to relationships with customers, suppliers, distributors and other business partners resulting from the announcement or completion of the transaction; unexpected costs, charges or expenses resulting from the transaction; Xylem’s ability to achieve expected synergies or realize expected tax benefits from the transaction; delays, challenges and expenses associated with integrating the acquired businesses into Xylem; the impact of overall industry and general economic conditions, including interest rates, inflation and governments’ related monetary policy in response; geopolitical events and regulatory, economic and other risks associated therewith; and other factors set forth under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 and in subsequent filings we make with the Securities and Exchange Commission (“SEC”). The forward-looking statements included in this press release are made based on information currently available to us as of the date of this press release. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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1 As used below: 1) “EBITDA” is defined as earnings before interest, taxes, depreciation and amortization expense; 2) “EBITDA margin” is defined as EBITDA divided by revenue; and 3) “adjusted earnings per share” is defined as diluted earnings per share, adjusted to exclude restructuring and realignment costs, amortization of acquired intangible assets, gain or loss from sale of businesses, special charges and tax-related special items, as applicable.

 

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