Enerpac Tool Group Corp. has announced it has entered into a definitive agreement with SFEG Holdings, Inc., a portfolio company of Gladstone Investment Corporation, to acquire Specialized Fabrication Equipment Group LLC (SFE Group) for approximately $472 million. The purchase price represents a multiple of 10.6x trailing-twelve-month adjusted EBITDA and 9.5x trailing adjusted EBITDA with synergies anticipated to be realized within three years following the acquisition. SFE Group generated on a trailing twelve months basis sales of approximately $170 million and approximately $44 million of adjusted EBITDA.
“We have remained highly disciplined in pursuing M&A opportunities that align with our strategic priorities and financial criteria,” said Paul Sternlieb, Enerpac Tool Group’s President & CEO. “SFE Group is exactly the type of high-quality, growing business that we have been seeking: a premium brand platform with strong margins, complementary market position, a demonstrated track record of both organic and inorganic growth, and a platform for meaningful future growth potential. The acquisition of SFE Group will advance Enerpac Tool Group’s pure-play industrial tools and solutions strategy by expanding our presence in attractive industrial tools categories while creating opportunities to leverage our scale, technical and applications expertise, and customer and channel partner relationships. This acquisition will further expand Enerpac Tool Group’s total addressable market by approximately $1 billion. We look forward to welcoming the SFE Group team to the Enerpac family and believe this acquisition will position us to continue to drive sustainable growth and long-term shareholder value.”
“As we plan to integrate the business and deploy our business system, including Powering Enerpac Performance (PEP) and Enerpac Commercial Excellence (ECX) tools, we look forward to unlocking key synergies and additional commercial and operational benefits,” said Sternlieb.
Headquartered in Houston, Texas, SFE Group is a global provider of specialized fabrication, welding, portable machining, and material-handling equipment serving critical industries. SFE Group operates a portfolio of 12 well-established brands, including Climax, B&B Sumner, Axxair, Sumner Material Lifts, TAG, Mathey Dearman, Magnatech, Bortech, Fit-Up Pro, H&S Tool, PPM, and Calder, with leading market positions and a reputation for quality, durability, reliability, and technical expertise.
“Joining Enerpac Tool Group marks an exciting chapter for our team. It will give us the resources, operational rigor, and platform to accelerate investments in innovation while continuing to deliver top-tier solutions for our customers and partners,” said Vinay Varma, CEO of SFE Group, who will continue to run the business as President of SFE Group.
The acquisition is expected to be funded with cash on hand and borrowings under the Company’s senior credit facility, which was amended in connection with the execution of the acquisition agreement to increase the revolving credit facility thereunder from $400 million to $625 million.
The transaction is expected to close in the first quarter of Fiscal 2027 and is subject to regulatory approvals and customary closing conditions.
1 Adjusted to exclude extraordinary and nonrecurring items.
2 Adjusted for transaction costs, integration costs and noncash acquisition-related charges.