ESAB Corp (NYSE:ESAB) saw its stock decline by 8% on Monday after revealing plans to acquire Eddyfi Technologies for $1.45 billion. The industrial company described Eddyfi as a provider of advanced inspection and monitoring technologies and said the transaction is expected to close in mid-2026.
ESAB said the purchase will be financed through a combination of cash, debt and $318 million in committed equity. Management provided projected financial metrics for Eddyfi, indicating roughly $270 million in revenue and $80 million in adjusted EBITDA by 2026. ESAB said that figure could rise to about $100 million in adjusted EBITDA when expected synergies are included.
Strategic rationale and market exposure
ESAB characterized the acquisition as a strategic move to broaden its product and service offering. In a company statement, Shyam P. Kambeyanda, President and CEO of ESAB Corporation, said: "This acquisition is a pivotal step that strengthens ESAB and sets the course for our next phase of growth. With the addition of Eddyfi, ESAB becomes the unrivaled provider of a full workflow solution spanning fabrication, inspection and monitoring."
The company estimated the deal expands ESAB's total addressable market by about $5 billion and increases its presence in higher-growth end markets including aerospace and defense, nuclear, energy and civil infrastructure.
Integration targets and financial outlook
ESAB expects to realize approximately $20 million in synergies through integration and application of its Business Excellence System. The company also released preliminary fourth-quarter results alongside the acquisition announcement.
For the fourth quarter, ESAB projected total revenue between $720 million and $722 million and core revenue of $687 million to $689 million. The company anticipates fourth-quarter operating income of $86 million to $88 million and diluted earnings per share from continuing operations of $0.81 to $0.83.
Looking to full-year 2025, ESAB forecast total revenue of about $2.84 billion and operating income in the range of $411 million to $413 million. Management said it expects the company's net leverage ratio to be below 3.0x by year-end after the transaction closes.
Contextual note
The information above reflects the company's public projections and the terms ESAB disclosed in connection with the proposed acquisition. Where the release provided ranges or estimates, those ranges are reported as given by ESAB.