Enerpac Tool Group has entered into a definitive agreement to acquire Specialised Fabrication Equipment Group (SFE Group) from SFEG Holdings, a portfolio company of Gladstone Investment Corporation, for approximately $472 million in cash.

The transaction values SFE Group at 10.6 times trailing adjusted EBITDA and is expected to close in the first quarter of fiscal 2027, subject to regulatory approvals and closing conditions.

Headquartered in Houston, Texas, SFE Group provides specialised fabrication, welding, portable machining, and material-handling equipment to critical industries worldwide.

The company operates 12 established brands, including Climax, B&B Sumner, Mathey Dearman, and H&S Tool, generating approximately $170 million in sales and $44 million in adjusted EBITDA.

Enerpac expects to fund the acquisition through cash reserves and expanded credit facilities.

The deal is expected to strengthen Enerpac’s industrial portfolio, with synergies anticipated within three years of completion.

“We have remained highly disciplined in pursuing M&A opportunities that align with our strategic priorities and financial criteria,” said Paul Sternlieb, Enerpac Tool Group's President & CEO. “SFE Group is exactly the type of high-quality, growing business that we have been seeking: 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. The acquisition of SFE Group will advance Enerpac Tool Group’s pure-play industrial tools and solutions strategy by expanding our presence in attractive industrial tools categories while creating opportunities to leverage our scale, technical and applications expertise, and customer and channel partner relationships. This acquisition will further expand Enerpac Tool Group’s total addressable market by approximately $1 billion. We look forward to welcoming the SFE Group team to the Enerpac family and believe this acquisition will position us to continue to drive sustainable growth and long-term shareholder value.”

“As we plan to integrate the business and deploy our business system, including Powering Enerpac Performance (PEP) and Enerpac Commercial Excellence (ECX) tools, we look forward to unlocking key synergies and additional commercial and operational benefits,” added Sternlieb.

“Joining Enerpac Tool Group marks an exciting chapter for our team. It will give us the resources, operational rigor, and platform to accelerate investments in innovation while continuing to deliver top-tier solutions for our customers and partners,” said Vinay Varma, CEO of SFE Group, who will continue to run the business as President of SFE Group. -OGN/TradeArabia News Service