MILWAUKEE, July 7, 2026 — Enerpac Tool Group Corp. (NYSE: EPAC) announced it has entered into a definitive agreement with SFEG Holdings, Inc., a portfolio company of Gladstone Investment Corporation, to acquire Specialized Fabrication Equipment Group LLC (SFE Group) for approximately $472 million in cash. The purchase price represents 10.6x trailing-twelve-month adjusted EBITDA and 9.5x trailing adjusted EBITDA with synergies expected within three years of closing.
SFE Group, headquartered in Houston, Texas, generated approximately $170 million in trailing-twelve-month sales and about $44 million in adjusted EBITDA. The company is a global provider of specialized fabrication, welding, portable machining and material-handling equipment serving aerospace and defense, oil and gas, bio-pharma, power generation, semiconductor, maritime, mining, transportation, data centers and hospitals.
SFE operates a portfolio of 12 established brands — Climax, B&B Sumner, Axxair, Sumner Material Lifts, TAG, Mathey Dearman, Magnatech, Bortech, Fit-Up Pro, H&S Tool, PPM and Calder — with roughly 350 employees, four production facilities and seven rental depots worldwide. SFE was formed in 2019 through the merger of three brands and has grown through subsequent bolt-ons.
"SFE Group is exactly the type of high-quality, growing business that we have been seeking," said Paul Sternlieb, Enerpac's President and CEO. "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." He added that the acquisition advances Enerpac's pure-play industrial tools strategy and expands its total addressable market by roughly $1 billion.
Vinay Varma, CEO of SFE Group, will continue to run the business as President of SFE Group. Enerpac plans to apply its PEP (Powering Enerpac Performance) operating system and Enerpac Commercial Excellence (ECX) commercial tools to drive integration synergies.
The transaction will be funded with cash on hand and borrowings under Enerpac's senior credit facility, which was upsized from $400 million to $625 million in connection with the deal. Net debt-to-adjusted EBITDA is expected to be approximately 2.8x at closing. The deal is expected to close in Enerpac's first quarter of fiscal 2027, subject to regulatory approvals and customary closing conditions, and to be accretive to fiscal 2027 adjusted EPS.
Enerpac, founded in 1910 and headquartered in Milwaukee, is a global provider of high-pressure hydraulic tools, controlled-force products and precise heavy-load positioning solutions, trading on the NYSE under the ticker EPAC.