Enerpac Tool Group to buy SFE Group for $472 million

Enerpac Tool Group Corp. (NYSE: EPAC) has entered into a definitive agreement to acquire Specialized Fabrication Equipment Group LLC (SFE Group) for approximately $472 million in cash, according to a company statement.

The seller is SFEG Holdings, Inc., a portfolio company of Gladstone Investment Corporation. The purchase price represents a multiple of 10.6x SFE Group's trailing-twelve-month adjusted EBITDA. SFE Group reported approximately $170 million in trailing twelve-month sales and approximately $44 million in adjusted EBITDA.

Headquartered in Houston, Texas, SFE Group operates a portfolio of 12 brands, including Climax, B&B Sumner, Axxair, Mathey Dearman, and Magnatech, among others. The company serves industries including aerospace and defense, oil and gas, power generation, and semiconductors, with approximately 350 employees across four production facilities and seven rental depots.

Enerpac plans to fund the acquisition with cash on hand and borrowings under its senior credit facility, which was amended to increase the revolving credit facility from $400 million to $625 million. Net debt-to-adjusted EBITDA is expected to be approximately 2.8 times upon closing.

The transaction is expected to close in the first quarter of Enerpac's fiscal year 2027, subject to regulatory approvals and customary closing conditions. Enerpac said it expects the acquisition to be accretive to fiscal 2027 adjusted earnings per share.

Vinay Varma, current CEO of SFE Group, will continue to lead the business as President of SFE Group following the close of the transaction.

Enerpac said the acquisition is expected to expand its total addressable market by approximately $1 billion. The company is scheduled to provide further details on an earnings conference call on July 8, 2026.

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