Enerpac Completes $472 Million Acquisition of SFE Group, Expanding Its Addressable Market
Key Facts
Enerpac Tool Group has completed its acquisition of SFE Group, in a deal valued at about $472 million when announced, according to the company’s July 7 statement. The cash consideration is about $451.4 million, alongside restricted stock units valued at about $20.6 million for key employees, according to Enerpac’s filing with the U.S. Securities and Exchange Commission. The announcement described the price as equivalent to 10.6 times adjusted earnings before interest, taxes, depreciation and amortization for the latest 12 months. The multiple falls to 9.5 times when factoring in synergies the company expected to realize over three years. Enerpac said the acquisition expands its total addressable market by about $1 billion.
SFE joins the group with businesses that recorded sales of about $170 million and adjusted earnings before interest, taxes, depreciation and amortization of about $44 million for the latest 12 months through the deal announcement. The company operates in specialized manufacturing equipment, welding, portable machining and material handling, according to Enerpac’s statement. Its portfolio includes 12 established brands, adding a range of industrial products and brands to the group. The markets it serves include aerospace and defense, food and beverage, biopharma, oil and gas, manufacturing, utilities and power generation. They also include semiconductors, transportation, data centers and hospitals, according to the same statement. These areas give the deal reach across multiple industrial sectors, while the company put the increase in its addressable market at about $1 billion.
Enerpac said when announcing the agreement that it expected the acquisition to boost adjusted earnings per share in fiscal 2027. The company tied part of the deal’s funding to available cash and borrowing, and said the limit on its revolving credit facility increased from $400 million to $625 million in July. It estimated net debt to adjusted earnings before interest, taxes, depreciation and amortization at about 2.8 times at closing. These figures and forecasts were included in the deal announcement, while the disclosed contractual consideration differs from the approximate description of the deal’s value: cash and restricted stock units for key employees. These terms place financing and leverage among the deal details alongside the scale of the businesses that joined Enerpac.
The deal comes ahead of Enerpac’s fiscal 2026 fourth-quarter results, scheduled for release after the market closes on October 28, according to an investor relations notice. The company scheduled a call to discuss the results for October 29 at 8:30 a.m. Eastern time, or 7:30 a.m. Central time. In the third quarter, the company recorded net income of $29.8 million and diluted earnings per share of $0.58. In the same period of fiscal 2025, net income was $22.0 million and diluted earnings per share were $0.41. CEO Paul Sternlieb said the company faced ongoing market challenges during the quarter because of the conflict in the Middle East. He added that service business improved sequentially and that the company expected improvement to continue in coming quarters as commercial activity and restructuring measures took effect.
Enerpac shares, listed under the ticker EPAC, closed at $35.36 on October 27, according to EL7 data. That price alone does not measure the stock’s move in response to the deal’s completion. After announcing its fourth-quarter results and the call scheduled for the following day, the company set November 4 for its investor day at the New York Stock Exchange. The investor day comes a week after the results announcement, while the company’s schedule sets out clear dates in the days following completion of the acquisition. Expectations for higher earnings in fiscal 2027 and for synergies to be realized over three years remain within the framework Enerpac announced with the agreement.