Ferguson to Acquire FloWorks for $1.6 Billion

Ferguson Enterprises Inc. has entered into a definitive agreement to acquire FWI Holdings, Inc. ("FloWorks"), a leading industrial distributor and service provider of highly technical valves and flow control solutions, from Wynnchurch Capital L.P. The cash transaction values FloWorks at an enterprise value of approximately $1.6 billion.

Orrick represents Ferguson.

THE COMPANIES

Ferguson is North America's largest value-added distributor of essential water and air solutions, serving specialized professionals in their residential and nonresidential construction markets. They help make their customers' complex projects simple, successful and sustainable by providing expertise and a wide range of products and services from plumbing, HVAC, appliances, and lighting to PVF, water and wastewater solutions, and more.

Founded in 1961, FloWorks distributes and services highly technical valves and flow control solutions. The Company operates more than 60 locations nationwide, primarily along the Gulf Coast and across the southern United States, and serves a diversified mix of attractive non-residential end markets.

Wynnchurch Capital, L.P. is a leading middle market private equity investment firm that has been investing in industrial businesses for more than 25 years.

THE IMPACT

The transaction is expected to increase Ferguson's total addressable market to $400 billion and expand its non-residential value-added capabilities.

"FloWorks strengthens our leading position in high-growth industrial end markets, while adding meaningful capabilities and geographic coverage which we can leverage across our non-residential customer groups," said Kevin Murphy, CEO of Ferguson. "Their expert teams, technical capabilities and strong OEM brands will further enhance our ability to provide essential water solutions for the specialized professional. We welcome their associates to Ferguson and look forward to our next chapter of growth together."

THE TEAM

Ken Wiggins and Santi Assalini lead the Orrick team which includes Daniel Rico, Lauren Donnelly, Wallace Stage, Elle Jiang, Jeff Zhang, Martha Wang, Kay Zou, Laura Bagarella, Keith Tidwell, Sharon Zhou, SeoJung Park, Craig Falls, Victoria Newbold, Amy Ray, Kristin Petersen, Brendan McGuire, Sarah Schaedler, Daniel Kearney, Tiantian Shi, Sarah Tauman, Robin Freedman, Chris Chavez, Taylor Barokh, Craig Guzman, Bart Kempf, Lauren Buehler, Zachary Huey, Jeanine McGuinness, Allison Bradham, Gregory Hume, Matthew Coleman, James Chou and Carly Owens.

READ MORE

• Ferguson's Press Release
• Read More Client Results