Madison Air Solutions Corporation to Acquire German Manufacturer ebm-papst for $5.4 Billion
Madison Air Solutions Corporation has entered into a definitive agreement to acquire ebm-papst, a leading global supplier of high-performance airflow technology based in Germany. The enterprise purchase price for the acquisition is set at $5.4 billion, which represents an effective enterprise purchase price of $5.0 billion net of future tax savings. Jill Wyant, President and CEO of Madison Air Solutions Corporation, stated that the acquisition will nearly double the company's addressable market and strengthen its position in growing markets. The deal is expected to close around the end of the year, pending regulatory approvals. Madison Air Solutions Corporation will fund the transaction through a combination of cash, debt, and equity financing, with debt commitments already secured from UniCredit and Wells Fargo. The acquisition integrates ebm-papst's engineering expertise with Madison Air Solutions Corporation's application expertise. Klaus Geiβdörfer, CEO of ebm-papst, noted that the company is excited to join an organization that values its technology and culture. The combined entity is expected to generate significant long-term value for shareholders.