Enerpac Tool Group has agreed to acquire Specialized Fabrication Equipment Group (SFE Group) from SFEG Holdings, a portfolio company of Gladstone Investment Corporation, in a transaction valued at approximately $472 million. The deal is expected to close in the first quarter of Enerpac’s fiscal 2027, subject to regulatory approvals and customary closing conditions.
The purchase price equates to about 10.6x trailing twelve‑month adjusted EBITDA and 9.5x trailing adjusted EBITDA including synergies expected within three years. On a trailing twelve‑month basis, SFE Group generated roughly $170 million in sales and about $44 million of adjusted EBITDA. Enerpac said the acquisition will expand its total addressable market by approximately $1 billion and further its strategy as a pure‑play industrial tools and solutions provider.
Headquartered in Houston, SFE Group is a global supplier of specialized fabrication, welding, portable machining, and material‑handling equipment for critical industries. It operates a portfolio of 12 established brands—including Climax, B&B Sumner, Axxair, Sumner Material Lifts, TAG, Mathey Dearman, Magnatech, Bortech, Fit‑Up Pro, H&S Tool, PPM, and Calder—known for quality, durability, and technical expertise.
Enerpac plans to integrate SFE Group using its business system, including Powering Enerpac Performance (PEP) and Enerpac Commercial Excellence (ECX), to unlock synergies and operational benefits. SFE Group CEO Vinay Varma will remain with the business as President of SFE Group after the transaction closes, supporting continuity and growth.
The acquisition will be funded with a combination of cash on hand and borrowings under Enerpac’s senior credit facility. In connection with the deal, the company amended its credit agreement to increase its revolving facility from $400 million to $625 million.
KEY QUOTES:
“SFE Group is exactly the type of high-quality, growing business that we have been seeking: a premium brand platform with strong margins, complementary market position, a demonstrated track record of both organic and inorganic growth, and a platform for meaningful future growth potential. This acquisition will further expand Enerpac Tool Group’s total addressable market by approximately $1 billion.”
Paul Sternlieb, President & CEO, Enerpac Tool Group
“Joining Enerpac Tool Group marks an exciting chapter for our team. It will 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.”
Vinay Varma, CEO of SFE Group
