The Enerpac SFE acquisition closed on October 28, 2026, with Enerpac Tool Group buying Specialized Fabrication Equipment Group for approximately $472 million. The deal adds 12 industrial equipment brands to Enerpac’s portfolio.

Key Takeaways

  • The purchase price includes approximately $452 million in cash and $20 million in equity awards in lieu of certain transaction bonuses.
  • SFE generated approximately $170 million in sales and $44 million in adjusted EBITDA in the 12 months ended March 31, 2026.
  • Enerpac expects the acquisition to add to adjusted earnings per share in fiscal 2027.

Enerpac SFE acquisition terms and financing

Enerpac acquired SFE from SFEG Holdings, a portfolio company of Gladstone Investment Corporation. The cash portion of the purchase price is subject to customary closing adjustments. Enerpac had announced the deal on July 7; its earlier acquisition agreement set out the planned purchase before the transaction closed.

Enerpac funded the deal with cash on hand, an expanded $300 million term loan and borrowings under a new $550 million revolving credit facility. The five-year senior credit facility closed on October 16 and totals $850 million, with an option to increase capacity by up to another $425 million.

The company estimated its net debt-to-adjusted EBITDA ratio at approximately 2.3 times on a pro forma basis at closing. It also estimated transaction costs of approximately $8 million and integration costs of $10 million to $14 million.

Brands and expected financial contribution

Houston-based SFE supplies fabrication, welding, portable machining and material-handling equipment. Its brands include Climax, B&B Sumner and Axxair. The company has approximately 350 employees worldwide, with five production facilities and seven rental depots.

Enerpac expects the acquisition to be accretive to fiscal 2027 adjusted earnings per share. It also expects $4 million to $6 million in synergies by year three; those benefits remain estimates rather than completed savings.

Equity awards for SFE employees

Enerpac said it will grant approximately $21.2 million in inducement equity awards to 14 senior SFE employees. That includes the $20 million in awards granted in lieu of certain transaction bonuses that Gladstone would otherwise have paid at closing.

The awards have different vesting terms. Some depend on performance metrics or achievement of SFE’s calendar 2026 budgeted EBITDA target.

Next milestone

Enerpac is scheduled to discuss its fourth-quarter fiscal 2026 earnings on an investor call at 7:30 a.m. Central time on October 29, 2026, following the results release after the market close on October 28.

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