Madison Air Solutions (NYSE:MAIR) has announced an agreement to acquire ebm-papst, a Germany-based provider of airflow technology, for a total enterprise value of $5.8 billion. The adjusted enterprise purchase price is set at $5.4 billion, or approximately $5 billion after anticipated tax savings. The transaction is expected to close around year-end, pending customary conditions.
This acquisition aims to expand Madison Air’s addressable market from $40 billion to about $70 billion. ebm-papst, which anticipates generating $2.8 billion in revenue and $343 million in adjusted EBITDA by 2026, will enhance Madison Air’s capabilities in critical sectors such as healthcare and data centers. The deal will also provide expected annual run-rate cost synergies of around $160 million within three years of closing.
The acquisition will be financed entirely in cash through a mix of existing cash, debt, and equity, with Madison Air projecting net leverage below four times upon closing. The combined entity aims for a 25% adjusted EBITDA margin by the third year post-acquisition.
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