Ferguson buys FloWorks for $1.6 billion

• Ferguson Enterprises agreed to acquire FloWorks from Wynnchurch Capital in a cash deal valued at about $1.6 billion.
• FloWorks has grown into a specialty distribution platform generating more than $1 billion in annual revenue.
• Wynnchurch said its ownership period included seven acquisitions, operational improvements and expansion efforts.

Ferguson Enterprises (NYSE:FERG) agreed to acquire FWI Holdings, the parent company of FloWorks, from Wynnchurch Capital in a cash transaction valuing FloWorks at approximately $1.6 billion in enterprise value.

The deal follows Wynnchurch’s acquisition of FloWorks in January 2023, during which the company expanded through acquisitions and grew its specialty distribution operations across industrial markets.

“FloWorks represented an opportunity to build a leading specialty distribution platform focused on engineered flow control products and technical solutions,” said Wynnchurch Capital Managing Partner Greg Gleason.

Under Wynnchurch’s ownership, FloWorks completed seven strategic add-on acquisitions, expanded its geographic footprint and developed a specialty distribution platform generating more than $1 billion in annual revenue.

The companies did not disclose additional financial terms or a closing date for the transaction; following the announcement, Ferguson Enterprises shares were unchanged at $174.62.

FloWorks is headquartered in Houston, Texas and distributes critical flow control products while providing technical solutions for maintenance, repair and operations applications across industrial sectors.

Wynnchurch acquired FloWorks from Clearlake Capital Group in 2023 and partnered with management to expand the business through acquisitions, technology investments and commercial improvements.