AcquisitionsMay 7, 2026, 06:37 AM
ESAB to Acquire Eddyfi for $1.45B; Q1 Net Sales Up 10% to $745.6M
AI Summary
ESAB Corporation announced an agreement to acquire Eddyfi Technologies for approximately $1.45 billion, expected to close in mid-2026. This acquisition will be funded through a combination of cash, debt, and approximately $318 million in equity, including the issuance of $175 million in mandatory convertible preferred stock and $143 million in common stock. For the first quarter of 2026, ESAB reported a 10% increase in net sales to $745.6 million, but net income attributable to the company decreased by 29% to $47.6 million, with diluted EPS from continuing operations falling to $0.82.
Key Highlights
- ESAB agreed to acquire Eddyfi Technologies for approximately $1.45 billion, expected to close mid-2026.
- The acquisition will be funded by cash, debt, and $318 million in equity, including $175 million in mandatory convertible preferred stock.
- Issued $1.0 billion in 5.625% senior notes due 2031, partially to fund the Eddyfi acquisition.
- Net sales for Q1 2026 increased 10% to $745.6 million, up from $678.1 million in Q1 2025.
- Net income attributable to ESAB Corporation decreased 29% to $47.6 million in Q1 2026 from $67.4 million in Q1 2025.
- Diluted EPS from continuing operations was $0.82 in Q1 2026, down from $1.14 in Q1 2025.
- Equipment sales grew 13.8% to $264.7 million, while consumables sales increased 7.9% to $480.9 million.
- Declared a quarterly dividend of $0.10 per share for Q1 2026, an increase from $0.08 per share in Q1 2025.