Madison Air Solutions has agreed to acquire German airflow technology company ebm-papst for an enterprise purchase price of approximately $5.4 billion, significantly expanding its position across air quality, cooling and industrial process applications.
The effective enterprise purchase price is approximately $5.0 billion after expected future tax savings. That represents approximately 14.6 times ebm-papst’s forecast 2026 adjusted EBITDA, or approximately 10 times when including anticipated run-rate synergies.
Founded in 1963 and headquartered in Mulfingen, Germany, ebm-papst is a major supplier of high-performance airflow technology and integrated electronically commutated fan and motor systems. More than 250 million fans from its Air Technology business have been installed globally.
The company operates across approximately 40 countries and is expected to generate roughly $2.8 billion in 2026 revenue and $343 million in adjusted EBITDA.
Madison Air said the acquisition will nearly double its addressable market by adding approximately $30 billion of opportunity and expanding its commercial, aftermarket and services businesses.
The combination will also give Madison Air access to more than 1,200 ebm-papst patents while vertically integrating fan and motor technologies further into its existing air quality platform.
Madison Air expects approximately $160 million in annual run-rate cost synergies by the third year following the transaction. The savings are expected to come from its 80/20 operating model, procurement efficiencies, greater scale and other operational improvements.
The acquisition is expected to be accretive to adjusted EPS during the first full year following closing.
Madison Air plans to finance the transaction through cash on hand and debt and equity financing. UniCredit and Wells Fargo have provided fully underwritten commitments for the debt portion of the acquisition financing.
Pro forma net leverage is expected to remain below 4 times at closing, with Madison Air targeting approximately 2.5 times within two years.
The transaction is expected to close around year-end, subject to regulatory approvals and customary closing conditions.
KEY QUOTES:
“We’re excited about the opportunities this acquisition creates for our customers, employees and shareholders as Madison Air continues to expand our ability to deliver Return on Air and strengthen our position in attractive, growing markets. As a longstanding ebm-papst customer, we have a deep appreciation for its integrated airflow technology, custom engineering expertise and talented team, which complement our expertise in mission-critical applications and market reach.”
“Fans enable the airflow performance our customers depend on every day. By combining ebm-papst’s differentiated technology with Madison Air’s application expertise, trusted customer relationships and proven operating model, we will help more customers improve uptime, efficiency, compliance and productivity in mission-critical environments. The acquisition nearly doubles our addressable market, broadens our aftermarket and services opportunity, and further strengthens our long-term growth profile. Together, we are confident we can accelerate growth, enhance performance and create significant long-term value for shareholders.”
Jill Wyant, President and CEO of Madison Air
“Madison Air was founded on the belief that business can be one of the most powerful forces for good, particularly when we help people live safer, healthier and more productive lives through the power of better air. Adding ebm-papst to the Madison Air portfolio is a natural extension of that purpose. The Board of Directors and I have tremendous confidence in Jill and her team and believe this combination will make Madison Air a stronger company capable of serving more customers, pursuing a larger opportunity and creating enduring value for many years to come.”
Larry Gies, Chairman and Founder of Madison Air
“Since our founding more than six decades ago, ebm-papst has built a reputation on engineering excellence, innovation and earning the trust of our customers. Madison Air shares that philosophy and has demonstrated a long-term commitment to supporting entrepreneurial businesses. We are excited to join an organization that values our people, our culture and our technology, and we look forward to what we can accomplish together.”
Klaus Geißdörfer, CEO of ebm-papst
