Industrial tool manufacturer Enerpac Tool has reached an agreement to acquire pipe fabrication, welding and machining equipment counterpart SFE Group, company officials announced Tuesday.
SFE, formed in 2019, includes the Climax, B&B Sumner, Axxair, Sumner Material Lifts, TAG, Mathey Dearman, Magnatech, Bortech, Fit-Up Pro, H&S Tool, PPM and Calder brands. The Houston-based company serves a wide range of industries, including manufacturing, energy, aerospace, food and beverage and others, with a staff of 350 across four manufacturing sites and seven rental depots.
The company recorded annual sales of about $170 million and adjusted EBITDA of some $44 million on a trailing 12-month basis, officials added. Enerpac expects to pay about $472 million in cash to acquire the business from Gladstone Investment Corp.
Enerpac President and CEO Paul Sternlieb said that the deal would advance the company’s “pure-play industrial tools and solutions strategy” by expanding its presence in “attractive” categories. It would also increase Enerpac’s total addressable market by some $1 billion, he said.
“We have remained highly disciplined in pursuing M&A opportunities that align with our strategic priorities and financial criteria,” Sternlieb said in the announcement. “SFE Group is exactly the type of high-quality, growing business that we have been seeking.”
SFE CEO Vinay Varma, who will continue to lead the business as its president under Enerpac, said the combination would “give us the resources, operational rigor and platform to accelerate investments in innovation while continuing to deliver top-tier solutions for our customers and partners.”
The deal is expected to close in Enerpac’s fiscal first quarter — which runs from September through November — subject to regulatory approval and other closing conditions.
Enerpac also reported its third-quarter earnings on Tuesday. The tool maker posted a 6% increase in sales year-over-year, along with stronger profit and earnings numbers, but reduced its annual outlook heading into its Q4 amid “near-term pressure from the service business and geopolitical events.”
