Filtration and Purification Technology Demand Pique Flow Control M&A Interest
Capstone Partners’ latest Flow Control Sector Update reports that the Flow Control sector has seen that the advancement of internet of things (IoT) and predictive maintenance has driven significant demand for high-technology flow control products. These emerging end markets include Water & Wastewater Treatment, Pharmaceuticals & Life Sciences, Energy Power Transmission & Distribution, Oil & Gas, and Cryogenics, with Capstone noticing a heightened interest among sector acquirers.
The implementation of tariffs has begun to impact costs for engineered products. The U.S. imported $31.3 billion worth of iron and steel and $27.4 billion of aluminum in 2024, according to the U.S. Department of Commerce. Canada was the U.S.’ top source for iron, steel, and aluminum in 2024, with the U.S. importing $11.4 billion worth of aluminum and $7.6 billion worth of iron and steel from Canada. Supply chain disruptions from shifting sourcing strategies may delay production timelines in highly regulated sectors where component specifications are strict. Limited substitution options may force firms to absorb costs, squeezing profitability. Despite tariff headwinds, U.S. manufacturers have experienced a favorable regulatory environment, and early signs have pointed to a growing book of business for domestic manufacturers.
Flow control merger and acquisition (M&A) activity has shown strong momentum in 2025, with dealmaking trending ahead of last year’s pace. The market remains active, particularly among engineered products companies pursuing consolidation strategies to expand their global reach. While strategic buyers have become more selective, private equity (PE) firms have stepped up their involvement, driving a notable shift in buyer composition. Public strategic acquisitions have slowed, whereas PE platforms and add-on deals have gained traction, now representing a significant share of overall transactions. This marks a high point for PE participation in the sector, reflecting their continued interest in inorganic growth, capital deployment, and leveraging financing opportunities.
Companies in the Cryogenic Infrastructure segment that offer a comprehensive suite of flow and thermal management solutions have found themselves uniquely positioned to serve the full customer lifecycle—from engineering design to aftermarket services. This end-to-end capability has increasingly become critical in complex, capital-intensive markets such as Liquefied Natural Gas (LNG), Carbon Capture, and Nuclear Energy, where customers demand sustainable and integrated systems that deliver reliability, efficiency, and long-term value. By combining expertise in cryogenic technologies with robust flow control systems, these companies have designed and delivered turnkey solutions tailored to specific operational needs. Notably, Vance Street Management acquired System Seals, a manufacturer of high-performance sealing solutions essential in high-pressure, high-compliance environments such as LNG, hydrogen, and industrial gas systems (December 2024, undisclosed). Vance Street’s Flow Control M&A activity reflects a deliberate move to consolidate niche industrial technologies that support mission-critical infrastructure. The integration of companies with complementary thermal management, flow control, and environmental safety capabilities has helped the firm build a portfolio that can address the growing demand for integrated, high-performance systems in Cryogenic and Clean Energy markets.
Also included in this report:
A trend analysis of infrastructure development and IoT advancement, focusing on how the emerging technologies are driving sector demand.
Various notable Flow Control M&A highlights representing buyer appetite and premium valuations within the sector.
A detailed review of equity financing in the Flow Control sector and the premium valuations for early-stage diversified companies.
Capstone Partners’ Industrials Investment Banking Team provides M&A, capital formation, and financial advisory services to the owners of middle market businesses in the Flow Control Sector. Our team partners with leading mid-to-large sized businesses that serve growing end-markets.
For more information on the Flow Control M&A trends featured in this report or to speak with one of our Industrial M&A Team members about how to grow, value, and/or sell your company, we are here to help. Contact us today.
