Ametek is in exclusive negotiations to acquire the testing and measurement businesses of Indicor, an industrials company owned by private-equity firm Clayton, Dubilier & Rice (CD&R). Sources close to the matter indicated the potential deal values these units at approximately $5 billion, with the transaction possibly concluding in the coming weeks. However, they also cautioned that the discussions remain fluid and could still fall through.

Indicor, established in 2022 as a holding company for industrial assets formerly owned by Roper Technologies, manufactures pumps, valves, sensors, and measurement equipment serving diverse sectors such as agriculture and automotive. Following its formation, Roper sold a majority stake in Indicor to CD&R. Ametek’s acquisition of the testing and measurement segment would represent a relatively modest expansion for the company, which maintains a market valuation exceeding $52 billion.

Headquartered in Berwyn, Pennsylvania, Ametek specializes in electronic instruments and devices catering to a broad array of industries, including aerospace, defense, and medical. The company is led by Chief Executive Officer Dave Zapico.

The potential transaction comes as CD&R pursues strategic divestitures to generate returns amid a challenging private-equity environment. The firm was reported earlier this year to be considering a sale of Indicor, aligning with broader efforts to exit investments. Last year, CD&R reached a deal to sell Foundation Building Materials, where it held a majority stake, to home improvement retailer Lowe’s for more than $8 billion, marking a significant successful exit.

Sources also noted that Indicor anticipates divesting its flow control and water solutions businesses separately, suggesting a phased approach to the company’s breakup. The outcome of the Ametek negotiations and the future sales of other Indicor units will be closely watched as private-equity firms navigate market pressures and seek liquidity.