ESAB (ESAB) M&A announcement summary

Deal rationale and strategic fit

• Acquisition creates a leading workflow solutions provider, spanning fabrication, inspection, and monitoring, and enhances value for customers and shareholders.

• Expands total addressable market by $5 billion, accelerating shift to higher-margin, less cyclical portfolio and unlocking faster growth.

• Strengthens presence in high-growth sectors such as Aerospace, Defense, Nuclear, Energy, and Civil Infrastructure.

• Provides a platform for further M&A in a fragmented, high-margin, lower cyclicality sector.

• Strong cultural alignment and shared values expected to facilitate integration and growth.

Financial terms and conditions

• Purchase price is $1.45 billion, cash-free and debt-free, funded by cash, debt, and $318 million in equity (MCPS and common equity).

• Implied valuation of 14.5x 2026 EBITDA including $20 million in run-rate synergies.

• Net leverage expected to be below 3.0x by year-end post-acquisition.

• Transaction expected to close in mid-2026, subject to customary conditions and regulatory approvals.

• Expected to be accretive to core growth and EBITDA margins in 2027 and beyond.

Synergies and expected cost savings

• $20 million in annualized run-rate synergies identified from sourcing, shared services, digital integration, and operational efficiencies.

• Synergies expected to build over time, leveraging business excellence systems and global scale.

• Eddyfi's adjusted EBITDA expected to rise from $80 million to $100 million with synergies.