Lone Star Funds announced Friday (Dec. 5) that they have agreed to sell its industrial processing firm, SPX Flow Inc., to ITT Corp. for $4.775 billion in cash and stock.
Lone Star Funds, a global private equity firm located in Dallas, acquired SPX Flow for $3.8 billion in a 2022 take-private transaction.
Based in Charlotte, SPX Flow sells a panoply of manufacturing and processing equipment — from homogenizers and pigging systems to centrifuges and spin flash dryers — across a diverse array of industries that produce or refine everything from biofuels and beverages to ships and electric vehicles.
ITT, which traces its origins as an industrial subsidiary of the historic global communications conglomerate, has evolved into a manufacturing company based in Stamford, Connecticut.
Goldman Sachs and UBS Investment Bank are serving as financial advisors to ITT. Paul Hastings is acting as ITT outside legal counsel.
Citi and Jefferies are serving as financial advisors to Lone Star Funds. Gibson Dunn & Crutcher are Lone Star outside legal counsel.
Under terms of the transaction, Lone Star will receive $700 million in ITT common stock and the remainder in cash. ITT said it intends to fund the cash portion of the transaction through a combination of debt and equity and has secured a bridge loan facility through U.S. Bank NA. The company said it doesn’t expect the acquisition to have any effect on its credit rating.
Following closing, expected sometime in Q1 2026, SPX Flow will join ITT’s Industrial Process segment. ITT IP is a global provider of centrifugal and twin-screw pumps and engineered valves with approximately $1.4 billion in revenue in 2024. During the 12-month preceding the end of Q3 2025, SPX Flow generated $1.3 billion in revenue, including 43 percent in aftermarket sales, with approximately 42 percent gross margin and a more than 21 percent EBITDA margin.
The Gibson Dunn team was led from Dallas by Jonathan Whalen, Joe Orien and Jeffrey Chapman. The team also included Cody Wilson (Dallas), Uyen Tu (Dallas), Marie Baldwin (Dallas), Michael Cannon (Dallas), Josiah Bethards (Dallas), Gina Hancock (Dallas), Joe Wachter (Dallas) and Kayoko Fong (Dallas).
Note: Gibson Dunn also advised Lone Star on its acquisition of SPX Flow in 2022. Chapman also led on that deal.
The Paul Hastings team was led from New York by Eduardo Gallardo. The team also included Colin Diamond (New York/Houston), Jason Ertel (New York), Sarah Gagan (Boston), Tracey Chenoweth (New York), Sally Evans (London), Jon Kubek (New York), Josh Soven (Washington, D.C.), Sherry Xie (New York) and Shai Marshall (New York).