In focus for MAIR: Madison Air Solutions' $5.8B play for Germany's ebm-papst
The $5.8 billion all-cash acquisition of Germany's ebm-papst is in focus for Madison Air Solutions (NYSE: MAIR), with the deal signed and closing expected around year-end pending customary conditions. The transaction includes roughly $375 million of non-interest-bearing operating liabilities that Madison Air negotiated as a purchase-price reduction, placing the effective enterprise purchase price at $5.4 billion, or approximately $5 billion after expected future tax savings. Regulatory clearance is the next confirmable milestone.
Key takeaways
- Madison Air Solutions (NYSE: MAIR) signed a $5.8 billion all-cash deal to acquire Germany's ebm-papst, with closing expected around year-end pending customary conditions.
- After roughly $375 million in negotiated operating liabilities, the effective enterprise purchase price is $5.4 billion, or about $5 billion after expected future tax savings.
- At the $5 billion effective price, the deal equals 14.6 times ebm-papst's forecast 2026 EBITDA, or roughly 10 times including projected cost savings.
- Madison Air targets about $160 million in annual run-rate cost savings by the end of the third year after closing, with roughly $40 million in the first 12 months.
- The acquisition is expected to expand Madison Air's addressable market to about $70 billion from roughly $40 billion and add an installed base of more than 250 million fans.
The $5.8 billion all-cash acquisition of Germany's ebm-papst is in focus for Madison Air Solutions (NYSE: MAIR), with the deal signed and closing expected around year-end pending customary conditions. The transaction includes roughly $375 million of non-interest-bearing operating liabilities that Madison Air negotiated as a purchase-price reduction, placing the effective enterprise purchase price at $5.4 billion, or approximately $5 billion after expected future tax savings. Regulatory clearance is the next confirmable milestone.
The numbers
ebm-papst is expected to generate approximately $2.8 billion in revenue and $343 million in adjusted EBITDA during 2026, per Madison Air's projections. At the effective $5 billion enterprise price, the company said the multiple equates to 14.6 times forecast 2026 EBITDA, or approximately 10 times when projected cost savings are included.
Madison Air expects approximately $160 million in annual run-rate cost savings by the end of the third year after closing, with roughly $40 million targeted during the first 12 months. Chief Financial Officer JJ Foley said the savings figure excludes potential revenue benefits from cross-selling and aftermarket expansion. The transaction is expected to be at least low-single-digit accretive to adjusted earnings per share in the first full year after closing (excluding intangible amortization), with low-double-digit accretion projected in the second year.
For 2026, Madison Air projects pro forma revenue of approximately $6.65 billion and pro forma adjusted EBITDA of approximately $1.39 billion before cost savings. The company reiterated its long-term targets for mid-single-digit annual revenue growth and high-single-digit annual adjusted EBITDA growth.
The setup
The deal is expected to expand Madison Air's addressable market to approximately $70 billion from roughly $40 billion currently and add an installed base of more than 250 million fans. Chief Executive Officer Jill Wyant said combining Madison Air's air-handling expertise with ebm-papst's electronically commutated fan and motor systems would improve the company's ability to serve data centers, healthcare facilities, semiconductor manufacturing, and pharmaceutical environments.
Madison Air pointed out that a fan can account for less than 10% of a system's upfront capital cost while energy consumption can represent up to 80% of lifetime ownership costs. That math gives the aftermarket and retrofit angle real weight.
ebm-papst, founded in 1963 and headquartered in Mulfingen, Germany, operates in about 40 countries. Its top 50 customers represented approximately 47% of 2025 sales, with no individual customer accounting for more than roughly 4% of revenue. Madison Air said it currently purchases below $100 million annually from ebm-papst and does not plan to disrupt the target's OEM relationships.
Financing comes through a combination of cash on hand, debt, and equity, with pre-approved packages from UniCredit and Wells Fargo. Net leverage is expected to be below four times at closing on a trailing 12-month basis, with the company targeting approximately 2.5 times two years after the close.
What to watch
Foley said ebm-papst currently operates at an adjusted EBITDA margin of approximately 12%. If the full $160 million cost-savings target were attributed to the acquired business, he said, that margin would rise to approximately 18%. The combined company is expected to approach a 25% adjusted EBITDA margin in the third year following the close. Watch for the definitive regulatory filings as the year-end closing window approaches.
Related reading
Filed by the newsroom of MarketPR on August 24, 2026. Source: finance.yahoo.com. Indicative figures are not investment advice.