ITT Pursues $4.5 Billion Acquisition of Lone Star's SPX Flow Flow

ITT Inc. is in advanced talks to acquire SPX Flow Inc., a transaction that could value the industrial equipment manufacturer at more than $4.5 billion, according to people familiar with the matter. A deal for the Charlotte, North Carolina-based company backed by Lone Star Funds could be announced within days, said the people, who asked not to be identified because the information was private. The potential acquisition would mark a significant expansion for ITT Inc., a global manufacturer of specialized equipment and services for various industries, including aerospace, defense, and energy. SPX Flow, on the other hand, has a diverse portfolio of products, including pumps, valves, and heat exchangers, which are used in applications such as food and beverage processing, oil and gas production, and power generation. "We believe that our business would be a great fit for ITT's portfolio of companies," said a spokesperson for SPX Flow, who declined to comment further on the potential deal. "We have a strong track record of innovation and customer satisfaction, and we are confident that our products and services would complement ITT's offerings well." The acquisition would also be a significant vote of confidence in the industrial equipment sector, which has faced challenges in recent years due to declining demand and increased competition from emerging markets. The deal would be one of the largest in the sector in recent years, and would likely be seen as a positive development for investors and employees of both companies. Lone Star Funds, the private equity firm that backs SPX Flow, has a history of investing in and transforming industrial companies. The firm's portfolio includes a number of successful acquisitions in the sector, including the purchase of the industrial equipment manufacturer, Gardner Denver. The potential deal is still in the advanced stages of negotiation, and it is unclear what the final terms of the acquisition would be. However, if the deal is completed, it would likely have significant implications for the industrial equipment sector and the companies involved. As the negotiations continue, industry analysts are watching the situation closely, eager to see how the deal would impact the sector and the companies involved. "This deal would be a significant development for the industrial equipment sector, and would likely have far-reaching implications for the companies involved," said an analyst at a leading research firm. "We will be closely following the situation and providing updates as more information becomes available."