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Madison Air Solutions to Buy Ebm-Papst in Growth Push

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Madison Air Solutions to Buy Ebm-Papst in Growth Push

Madison Air Solutions (MAIR) has agreed to acquire German airflow technology company Ebm-Papst as part of efforts to strengthen its air quality solutions portfolio, the companies said in separate statements Monday.

The transaction has an enterprise value of $5.4 billion, or $5 billion net of tax savings, according to Madison Air. Ebm-Papst separately put the enterprise value at 5.1 billion euros ($5.91 billion).

The acquisition gives Madison Air access to Ebm-Papst's integrated airflow technology. The deal is estimated to add about $30 billion to Madison Air's addressable market and expands its commercial, aftermarket and services opportunities.

"The acquisition nearly doubles our addressable market, broadens our aftermarket and services opportunity, and further strengthens our long-term growth profile," Madison Air Chief Executive Jill Wyant said.

Ebm-Papst, which operates in about 40 countries, is expected to generate around $2.8 billion in revenue in 2026. The company said it will retain its headquarters in Mulfingen.

"The group still has significant potential for further development, and with Madison we have found a partner that understands exactly what defines Ebm-Papst and what we need to further expand our market leadership," its CEO, Klaus Geissdoerfer, said. "We will also benefit from better access to the US market."

The transaction, which requires approval from regulators, is expected to close around the end of 2026, the companies said.

The deal is estimated to be accretive to Madison Air's adjusted earnings on a per-share basis in the first full year after completion and generate $160 million in annual run-rate cost synergies by the third year.

Last month, Madison Air reported second-quarter adjusted EPS of $0.31, up from $0.24 the year before. Sales climbed 21% to $991.3 million. At the time, the air quality solutions provider said it expected full-year 2026 sales to range from $3.83 billion to $3.93 billion, while the current consensus on FactSet is for $3.9 billion.

Last last month, RBC Capital Markets said Madison Air's improved net leverage profile should allow it greater flexibility in pursuing mergers and acquisitions opportunities.

Shares of the company, which went public in April, dropped 4% in Monday trade.

Price: $29.39, Change: $-1.89, Percent Change: -6.04%

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