AcquisitionsJul 7, 2026, 06:03 PM
Enerpac Tool Group to Acquire SFE Group for $472M
AI Summary
Enerpac Tool Group announced a definitive agreement to acquire Specialized Fabrication Equipment Group LLC (SFE Group) for approximately $472 million in cash. The acquisition is expected to expand Enerpac's presence in attractive industrial tools categories, adding $1 billion to its total addressable market, and is anticipated to be accretive to fiscal 2027 adjusted EPS. SFE Group generated approximately $170 million in sales and $44 million in adjusted EBITDA on a trailing twelve-month basis. The transaction will be funded with cash on hand and an increased senior credit facility, with closing expected in the first quarter of Fiscal 2027, subject to regulatory approvals.
Key Highlights
- Enerpac Tool Group to acquire SFE Group for approximately $472 million in cash.
- SFE Group generated $170 million in sales and $44 million in adjusted EBITDA (TTM).
- Purchase price represents 10.6x TTM adjusted EBITDA, or 9.5x with anticipated synergies.
- Acquisition expected to expand total addressable market by approximately $1 billion.
- Expected to be accretive to fiscal 2027 adjusted EPS.
- Revolving credit facility increased from $400 million to $625 million for funding.
- Net debt-to-adjusted EBITDA expected to be approximately 2.8 times post-closing.
- Transaction expected to close in the first quarter of Fiscal 2027.
Price Impact
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