ESAB Acquires Canadian Test Equipment Maker Eddyfi for $1.45 Billion
ESAB Corp, a prominent welding equipment manufacturer, announced its acquisition of Eddyfi Technologies, a Canadian testing instrument maker, for $1.45 billion. This strategic move aims to enhance ESAB’s product offerings and tap into rapidly growing markets such as aerospace and defense.
Strategic Benefits of the Acquisition
The acquisition of Eddyfi Technologies will expand ESAB’s market reach into high-growth sectors. These include:
- Aerospace
- Defense
- Nuclear energy
- Civil infrastructure
Shyam Kambeyanda, ESAB’s CEO, emphasized that this merger will bolster the company’s position in key end markets and facilitate its global expansion plans.
Funding Details
To finance the $1.45 billion deal, ESAB will utilize a combination of cash reserves, debt, and $318 million from fully committed equity. This financing strategy is expected to ensure smooth integration and growth.
Eddyfi’s Performance Projections
Eddyfi Technologies is projected to generate approximately $270 million in revenue and an adjusted EBITDA of $80 million by the year 2026. The acquisition is anticipated to be completed by mid-2026.
Company Overview
Headquartered in Quebec City, Canada, Eddyfi specializes in advanced sensing technologies, automated remote monitoring, robotics, and software services. Their expertise spans various industries, including aerospace, defense, and transportation.
Future Outlook
Following this acquisition, ESAB has adjusted its revenue projections for the year, now anticipating core revenue between $2.85 billion and $2.95 billion. This growth trajectory reflects the company’s commitment to innovation and market expansion.
