Enerpac Tool Group completes acquisition of Specialized Fabrication Equipment Group
Enerpac Tool Group Corp. announced Oct. 28 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 President and Chief Executive Officer Paul Sternlieb. “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.
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