July 13 (Reuters) - Plumbing supplies distributor Ferguson Enterprises said on Monday it will buy FloWorks from private equity firm Wynnchurch Capital for about $1.6 billion in cash, strengthening its portfolio of industrial flow-control products and services.
Shares of the company were up more than 2% in early trading.
Resilient demand for industrial maintenance has prompted distributors such as Ferguson to diversify their revenue streams beyond the construction sector to energy and manufacturing
industries.
FWI Holdings, known as FloWorks, distributes flow-control equipment used to regulate the flow of liquids, gases and steam through industrial pipelines and processes. The company generated roughly $1 billion in revenue in 2025.
Ferguson said the deal would expand its presence in high-growth markets such as data centers and semiconductors, and boost earnings immediately.
The transaction is expected to close in the third quarter of 2026, subject to customary conditions and regulatory approvals.
The company expects the acquisition to generate about $45 million in synergies and said its leverage would remain within its target range after the deal.
J.P. Morgan Securities is serving as Ferguson's financial adviser, while Orrick, Herrington & Sutcliffe is serving as legal counsel.
Ferguson said in June it would cancel its secondary listing in London to cut costs and simplify governance, leaving North America as its sole trading venue. It had shifted its primary share listing to the New York Stock Exchange in 2022.
Wynnchurch acquired a majority stake in FloWorks from private equity firm Clearlake Capital in 2023 for an undisclosed sum.
(Reporting by Apratim Sarkar in Bengaluru; Editing by Joyjeet Das and Sahal Muhammed)
