BY Richard Summerfield
Madison Air Solutions Corporation, a global provider of air quality solutions, has agreed to acquire ebm-papst in a deal worth $5.4bn.
According to a statement announcing the deal, the effective enterprise purchase price is $5bn net of future tax savings. Madison Air intends to fund the transaction through a combination of cash on hand and debt and equity financing. The company expects pro forma net leverage of less than 4.0x at closing, with a target of reducing net leverage to approximately 2.5x on a trailing 12-month basis within two years. The transaction is expected to close around year end, subject to regulatory approvals and satisfaction of customary closing conditions.
The deal is expected to add approximately $30bn to Madison Air’s addressable market and broaden its commercial, aftermarket and services opportunities through a larger installed base, broader customer relationships and expanded channel presence. Operating in approximately 40 countries, ebm-papst serves a diversified global customer base and is expected to generate approximately $2.8bn of revenue and approximately $343m of adjusted earnings before interest, taxes, depreciation and amortisation in 2026.
“We’re excited about the opportunities this acquisition creates for our customers, employees and shareholders as Madison Air continues to expand our ability to deliver Return on Air and strengthen our position in attractive, growing markets,” said Jill Wyant, president and chief executive of Madison Air. “As a longstanding ebm-papst customer, we have a deep appreciation for its integrated airflow technology, custom engineering expertise and talented team, which complement our expertise in mission-critical applications and market reach.
“Fans enable the airflow performance our customers depend on every day,” she continued. “By combining ebm-papst’s differentiated technology with Madison Air’s application expertise, trusted customer relationships and proven operating model, we will help more customers improve uptime, efficiency, compliance and productivity in mission-critical environments.”
Ms Wyant added that the acquisition nearly doubles the company’s addressable market, expands its aftermarket and services opportunities, and strengthens its long-term growth prospects. She also expressed confidence that the combined business will accelerate growth, improve performance and deliver significant long-term value for shareholders.
“Madison Air was founded on the belief that business can be one of the most powerful forces for good, particularly when we help people live safer, healthier and more productive lives through the power of better air,” said Larry Gies, chairman of the board and founder of Madison Air. “Adding ebm-papst to the Madison Air portfolio is a natural extension of that purpose. The Board of Directors and I have tremendous confidence in Jill and her team and believe this combination will make Madison Air a stronger company capable of serving more customers, pursuing a larger opportunity and creating enduring value for many years to come.”
“Since our founding more than six decades ago, ebm-papst has built a reputation on engineering excellence, innovation and earning the trust of our customers,” said Klaus Geiβdörfer, chief executive of ebm-papst. “Madison Air shares that philosophy and has demonstrated a long-term commitment to supporting entrepreneurial businesses. We are excited to join an organization that values our people, our culture and our technology, and we look forward to what we can accomplish together.”
News: Madison Air Solutions to buy German fan maker ebm-papst in $5.4 billion deal