Enerpac Tool Group Completes Acquisition of SFE Group, Expanding Portfolio of Premium Industrial Tool Brands

The purchase price represents 10.6 times SFE’s trailing adjusted EBITDA, or 9.5 times including expected synergies.

Rhea-AI Summary

Enerpac Tool Group (NYSE: EPAC) completed its acquisition of Specialized Fabrication Equipment Group for approximately $472 million, expanding its industrial tools portfolio. The price comprises approximately $452 million in cash, subject to customary closing adjustments, and $20 million in equity awards replacing certain transaction bonuses. SFE generated approximately $170 million in sales and $44 million in adjusted EBITDA, an adjusted earnings measure, for the trailing twelve months ended March 31, 2026.

Enerpac expects the acquisition to increase fiscal 2027 adjusted earnings per share and deliver $4 million to $6 million in synergies by year three. Funding included cash, an expanded $300 million term loan and revolving-credit borrowings. Estimated closing net debt-to-adjusted EBITDA is approximately 2.3 times. Estimated transaction costs are approximately $8 million, with integration costs of $10 million to $14 million.

4 points · 1 major

MixediHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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1 major · 5 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointCompleted approximately $472 million acquisition adds SFE Group’s fabrication, welding, portable machining and material-handling equipment business. 26% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 adjusted EPS is expected to benefit from the acquisition.
• Moderate pointFive-year $850 million credit facility closed October 16, 2026, with an accordion option of up to $425 million. 47% of market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.Expected synergies of $4 million to $6 million by year three reduce the purchase multiple to 9.5x.

Negative

• Major pointApproximately $452 million cash consideration, subject to customary closing adjustments, uses cash and borrowings. 25% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Expanded $300 million term loan and revolving-credit borrowings leave estimated closing net debt-to-adjusted EBITDA at approximately 2.3 times. 17% of market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.Approximately $8 million in estimated transaction costs accompany the acquisition.
• Minor point. Forward-looking: it has not happened yet and may not happen.Estimated integration costs of $10 million to $14 million add to acquisition expenses.
• Minor point. Forward-looking: it has not happened yet and may not happen.Approximately $21.2 million in planned equity awards to 14 SFE senior employees create potential dilution.

News Explained

A five-year credit facility includes up to four hundred twenty-five million dollars of optional capacity for future acquisitions.

Enerpac has completed the acquisition and will grant $21.2 million in equity awards to 14 SFE senior employees, including $20 million in place of transaction bonuses. The number of award units will be based on the October 28, 2026 closing share price; vesting schedules range from one to three years, and some awards depend on performance metrics or SFE’s 2026 budgeted EBITDA target.

A five-year senior credit facility totaling $850 million closed on October 16, 2026, with an accordion option for up to $425 million of additional capacity for future acquisitions.

Key Figures

Purchase price: $472 million Trailing sales: $170 million Adjusted EBITDA: $44 million +5 more

Purchase price

$472 million

$452 million cash and $20 million in equity awards

Trailing sales

$170 million

SFE Group trailing twelve months ended March 31, 2026

Adjusted EBITDA

$44 million

SFE Group trailing twelve months ended March 31, 2026

Purchase price / adjusted EBITDA

10.6x

Based on SFE Group trailing adjusted EBITDA

Purchase multiple including synergies

9.5x

Including expected synergies

Expected synergies

$4 million to $6 million

Expected by year three

Transaction costs

$8 million

Company estimate

Integration costs

$10 million to $14 million

Company estimate

Previous Acquisition Reports

1 past event · Latest: Jul 07

Same Type 1 event

1. Jul 07

   Acquisition agreement

   24h Move

   +6.3%

   July agreement established the SFE purchase terms; this announcement confirms the deal has closed.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda, adjusted eps, restricted stock units, performance stock units

4 terms

adjusted ebitda financial

"SFE Group generated approximately $170 million of sales and approximately $44 million of adjusted EBITDA"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

adjusted eps financial

"The acquisition is expected to be accretive to fiscal 2027 adjusted EPS"

Adjusted earnings per share (adjusted eps) is a measure of a company's profit per share that has been modified to exclude certain one-time or unusual items, such as costs from restructuring or asset sales. It provides a clearer picture of the company’s core performance by removing events that may distort the usual earnings. Investors use adjusted eps to better understand a company's ongoing profitability and compare it more accurately over time.

restricted stock units financial

"RSUs that will cliff vest on the third anniversary of the grant date"

Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.

performance stock units financial

"performance stock units (PSUs) that will cliff vest on the third anniversary"

Performance stock units are a type of company award that grants employees shares of stock only if certain performance goals are met. They motivate employees to work toward specific company achievements, aligning their interests with those of shareholders. For investors, they can influence a company's future stock supply and reflect management’s confidence in reaching key targets.

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Highlights

• Enerpac Tool Group has completed the previously announced acquisition of Specialized Fabrication Equipment Group LLC.
• The acquisition will expand Enerpac's exposure to high-growth end markets.
• SFE Group generated approximately $170 million of sales and approximately $44 million of adjusted EBITDA¹ for the trailing twelve months ended March 31, 2026.
• The acquisition is expected to be accretive to fiscal 2027 adjusted EPS².

MILWAUKEE, Oct. 28, 2026 (GLOBE NEWSWIRE) -- Enerpac Tool Group Corp. (NYSE: EPAC) (“Enerpac” or the “Company”) today announced that it has completed its previously announced acquisition of Specialized Fabrication Equipment Group LLC (“SFE Group”), a global provider of specialized fabrication, welding, portable machining, and material-handling equipment.

The acquisition, which was announced on July 7, 2026, strengthens Enerpac’s position as a premier industrial tools, services, technology, and solutions provider. SFE Group operates a portfolio of 12 established brands, including Climax, B&B Sumner, and Axxair.

“We are pleased to welcome the SFE Group team to Enerpac,” said Paul Sternlieb, President and Chief Executive Officer of Enerpac Tool Group. “SFE Group is an exceptional business with premium brands, strong margins, complementary products, and a proven track record of growth. The combination expands our addressable market and strengthens our capabilities in several attractive industrial applications, to create value for our customers, employees, and shareholders.”

“We are excited to join Enerpac Tool Group and begin the next chapter for SFE Group,” said Vinay Varma, President, SFE. “Enerpac’s global reach, technical capabilities, and operational resources provide a strong platform for our continued growth. Together, we are well positioned to deliver even greater value to our customers and partners while continuing to invest in our people, products, and innovation.”

Transaction Details
Enerpac acquired SFE Group from SFEG Holdings, Inc., a portfolio company of Gladstone Investment Corporation, for a purchase price of approximately $472 million, consisting of approximately $452 million in cash, subject to customary closing adjustments, and $20 million of equity awards granted in lieu of certain transaction bonuses, as described below under “Inducement Awards.” The purchase price represents 10.6x SFE Group’s trailing adjusted EBITDA, or 9.5x including expected synergies of $4 million to $6 million by year three. The Company estimates transaction costs of approximately $8 million and integration costs of $10 million to $14 million.

The transaction was funded with cash on hand, an expanded $300 million term loan, and borrowings under a new $550 million revolving credit facility. The new senior credit facility, which closed on October 16, 2026, is a five-year facility totaling $850 million, with an accordion option of up to an additional $425 million that provides further capacity for future M&A. Enerpac’s estimated ratio of net debt-to-adjusted EBITDA³ upon the closing of the acquisition, giving effect to the acquisition and borrowings and the application of cash to fund the acquisition, is approximately 2.3 times.

Inducement Awards
The Company will grant equity awards with an aggregate value of approximately $21.2 million to 14 senior employees of SFE Group (none of whom are expected to become executive officers of the Company) as inducement awards pursuant to New York Stock Exchange Listing Rule 303A.08. Of this amount, $20.0 million is being granted in lieu of certain transaction bonuses that would otherwise have been payable at closing by Gladstone. The number of units subject to the awards will be based on the closing price of the Company’s Class A common stock as of today. The awards consist of (1) restricted stock units (“RSUs”) that will cliff vest on the third anniversary of the grant date; (2) RSUs that will either cliff vest on the first anniversary of the grant date or vest over three years in equal annual installments; (3) performance stock units (“PSUs”) that will cliff vest on the third anniversary of the grant date based on achievement of certain performance metrics over such three-year period; and (4) performance-based RSUs, which will be granted upon achievement of the SFE Group calendar year 2026 budgeted EBITDA target and then vest three years thereafter. The inducement awards will be granted under the Company’s Inducement Equity Incentive Plan, which was adopted by the Company’s Board of Directors on August 26, 2026.

Conference Call Information
In conjunction with fourth quarter fiscal 2026 earnings, which will be released after the market closes on October 28, 2026, an investor conference call is scheduled for 7:30 am CT on October 29, 2026. Webcast information and conference call materials, including an earnings presentation, will be available on the Investor Relations website (https://ir.enerpactoolgroup.com/).

Safe Harbor Statement
Certain of the above comments represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such forward-looking statements are subject to inherent risks and uncertainties that may cause actual results or events to differ materially from those contemplated by such forward-looking statements. Statements with respect to the anticipated post-closing contributions of SFE Group to the Company’s consolidated results are subject to risks and uncertainties that include, but are not limited to: the ultimate outcome, benefits and synergies of the acquisition of SFE Group and future financial performance, including revenues, cash flows, operating expenses and profitability, which involve risks and uncertainties, and are subject to change based on various important factors; risks that the acquisition disrupts current plans and operations of Enerpac Tool Group or SFE Group; the risk that disruptions from the transaction may make it more difficult to maintain business and operational relationships, including retaining and hiring key personnel and maintaining relationships with SFE Group’s customers, distributors, vendors and others with whom it does business; and the impact of changes in relevant national and regional economies. Enerpac Tool Group disclaims any obligation to publicly update or revise any forward-looking statements as a result of new information, future events or any other reason, except to the extent required by law.

About Enerpac Tool Group
Enerpac Tool Group Corp. is a premier industrial tools, services, technology, and solutions provider serving a broad and diverse set of customers and end markets for mission-critical applications in more than 100 countries. Its tools and services make complex, often hazardous jobs possible safely and efficiently. The Company delivers mission-critical solutions across high-pressure hydraulics, precision-controlled force, lifting and positioning, pipe preparation, orbital welding and cutting, and on-site services for industrial customers worldwide. Founded in 1910, the Company is headquartered in Milwaukee, Wisconsin, and its common stock trades on the NYSE under the symbol EPAC. For more information, visit www.enerpactoolgroup.com.

About SFE Group
SFE Group is a global industrial equipment company focused on pipe fabrication, welding, machining, and maintenance tools. It was formed in 2019 through the merger of three established brands and subsequent acquisitions to include Climax, B&B Sumner, Axxair, Sumner Material Lifts, TAG, Mathey Dearman, Magnatech, Bortech, Fit-Up Pro, H&S Tool, PPM, and Calder. SFE Group serves industries such as aerospace and defense, power generation, semiconductor and data centers, oil and gas, manufacturing, utilities, maritime and shipping, mining, and transportation. It is based in Houston, Texas with approximately 350 employees globally at five production facilities and seven rental depots. For further information on SFE Group and its businesses, visit their website at www.sfe-brands.com.

Contact:
Christian Audi
Senior Director, Investor Relations
christian.audi@enerpac.com

^1. Adjusted to exclude items in a manner comparable to Enerpac’s presentation of its adjusted EBITDA in its announcements of financial results.
^2. Adjusted for transaction costs, integration costs, and noncash acquisition-related charges.
^3. Calculated in accordance with the terms of the Company’s senior credit facility closed on October 16, 2026. The estimated net leverage ratio is based on estimates of the Company’s consolidated net debt at closing following the acquisition, reflecting the application of cash and borrowings at closing to fund the acquisition, and of the Company’s adjusted EBITDA for the twelve months ended August 31, 2026 plus an additional $44M of adjusted EBITDA to reflect the pro forma contribution of SFE Group.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did Enerpac pay for SFE Group?

Enerpac acquired SFE Group for approximately $472 million from SFEG Holdings, a Gladstone Investment portfolio company. The price consists of approximately $452 million in cash, subject to customary closing adjustments, and $20 million in equity awards granted in lieu of certain transaction bonuses.

What earnings contribution does Enerpac expect from the SFE acquisition?

Enerpac expects the acquisition to increase fiscal 2027 adjusted earnings per share. SFE generated approximately $170 million in sales and approximately $44 million in adjusted EBITDA for the trailing twelve months ended March 31, 2026.

What are the vesting conditions for Enerpac’s SFE employee equity awards?

The awards have service-based and performance-based vesting conditions. Restricted stock units vest after one or three years, or in equal annual installments over three years. Performance stock units vest on the third anniversary based on three-year performance metrics. Another award category requires achievement of SFE’s calendar 2026 budgeted EBITDA target before grant, followed by three-year vesting.