Madison Air agrees $5.4 billion ebm-papst deal
- Madison Air agreed to acquire ebm-papst for a $5.4 billion enterprise value, or an effective $5 billion after expected tax savings.
- Madison Air shares were down 1.2% at $31.28 in pre-market trading following the announcement.
- Madison Air expects $160 million of annual run-rate cost synergies by year three and adjusted EPS accretion in the first full year after closing.
Madison Air Solutions (NYSE:MAIR) agreed to acquire German airflow technology provider ebm-papst for a $5.4 billion enterprise value, or an effective $5 billion purchase price after expected tax savings.
ebm-papst operates across roughly 40 countries and is forecast by Madison Air to generate about $2.8 billion of 2026 revenue and $343 million of adjusted EBITDA.
Madison Air values the deal at 14.6x forecast 2026 adjusted EBITDA, or about 10x including the $160 million of annual run-rate cost synergies it expects by year three.
Madison Air expects adjusted EPS accretion in the first full year and net leverage below 4x at closing.
Following the announcement, Madison Air's share price was down 1.2% at $31.28 in pre-market trading.
Madison Air reported Q2 2026 net sales of $991.3 million, up 21%, while adjusted EBITDA reached $265.8 million and backlog increased 133% to $2.87 billion.
The company completed its NYSE listing in April and ended June with 2.8x net leverage, while the ebm-papst acquisition is expected by Madison Air to add about $30 billion to its addressable market.
