Enerpac Tool Group completes $472m acquisition of SFE Group
Enerpac Tool Group (NYSE: EPAC) has completed its acquisition of Specialized Fabrication Equipment Group LLC (SFE Group) for approximately $472 million, bringing a portfolio of 12 industrial brands into the Milwaukee-headquartered company's fold. The deal, first announced on 7 July 2026, was closed on 28 October 2026.
SFE Group generated around $170 million in sales and approximately $44 million in adjusted EBITDA for the twelve months ended 31 March 2026. The purchase price equates to a multiple of 10.6 times trailing adjusted EBITDA, falling to 9.5 times when expected synergies of $4 million to $6 million by year three are factored in. Enerpac expects the deal to be accretive to its adjusted earnings per share in fiscal 2027.
The deal
Enerpac funded the acquisition through a combination of cash on hand, an expanded $300 million term loan, and drawings under a new $550 million revolving credit facility. The senior credit facility, which closed on 16 October 2026, totals $850 million over five years and includes an accordion option of up to a further $425 million, signalling appetite for additional bolt-on acquisitions. Enerpac's estimated net debt-to-adjusted EBITDA ratio at closing stands at approximately 2.3 times.
SFE Group was acquired from SFEG Holdings, a portfolio company of Gladstone Investment Corporation. Approximately $452 million of the purchase price was paid in cash, with $20 million structured as equity awards granted in lieu of transaction bonuses otherwise payable by Gladstone. Enerpac estimates transaction costs of around $8 million and integration costs of between $10 million and $14 million.
Paul Sternlieb, President and Chief Executive of Enerpac Tool Group, said: "SFE Group is an exceptional business with premium brands, strong margins, complementary products, and a proven track record of growth. The combination expands our addressable market and strengthens our capabilities in several attractive industrial applications."
Market context
SFE Group serves a notably broad set of end markets: aerospace and defence, power generation, semiconductor fabrication and data-centre construction, oil and gas, utilities, maritime and mining. The inclusion of semiconductor and data-centre customers is worth noting, given sustained capital spending in those segments driven by AI infrastructure build-out. Specialised pipe fabrication, welding and machining tools are essential to data-centre and hyperscaler construction projects, and that exposure could provide Enerpac with a meaningful growth avenue beyond its traditional heavy-industry base.
The industrial tools sector has seen steady consolidation over the past several years as larger platform companies seek to diversify revenue across multiple end markets and geographies. Enerpac's new senior credit facility, with its substantial accordion capacity, positions the company to continue that strategy. The company says it operates in more than 100 countries, giving acquired brands an immediate route to international distribution.
SFE Group employs approximately 350 people across five production facilities and seven rental depots globally. It was itself formed in 2019 through the merger of three brands before adding further acquisitions to reach its current 12-brand portfolio, which includes Climax, B&B Sumner, Axxair, Sumner Material Lifts, TAG, Mathey Dearman, Magnatech, Bortech, Fit-Up Pro, H&S Tool, PPM and Calder.
Enerpac will hold a conference call on 29 October 2026 at 7:30 am CT in conjunction with its fourth-quarter fiscal 2026 earnings release, at which management is expected to provide further detail on integration progress and updated financial guidance.