Madison Air Solutions has agreed to acquire Germany-based ebm-papst for $5.8 billion in total enterprise value, with the all-cash deal expected to close around year-end. The transaction includes approximately $375 million of non-interest-bearing operating liabilities negotiated as a purchase-price reduction, placing the enterprise purchase price at $5.4 billion, or $5 billion after expected future tax savings. Madison Air expects the acquisition to expand its addressable market to about $70 billion, add more than 250 million installed fans, and generate roughly $160 million in annual cost synergies by the end of the third year. The company projects low-single-digit adjusted EPS accretion in the first full year and plans to reduce leverage from below four times at closing to about 2.5 times within two years.
Madison Air Solutions CorporationAcquiring ebm-papst for $5.8B expands market, adds synergies, and accretive EPS.
Acquired at $5.8B enterprise value, providing shareholders with a premium cash exit.
