Madison Air Solutions agreed to buy German ventilation and motor specialist ebm-papst from its three owner families for about $5.4bn, the US company announced on 17 August.
Why Madison Air Solutions Corporation is buying ebm-papst
Madison Air said the deal nearly doubles its addressable market by adding about $30bn of opportunity, brings more than 1,200 patents and strengthens its position in Europe and Asia. Cooling equipment for data centres is a large and fast-growing part of ebm-papst's sales. Madison expects the deal to add to adjusted earnings per share in the first full year after closing.
Deal terms and financing
According to Madison's SEC filing, the enterprise purchase price is €4.775bn, with a base purchase price of €4.367bn plus interest from 1 July 2026 to closing. Madison expects about €371m of future tax savings, giving an effective price of €4.404bn. ebm-papst is forecast to generate about $2.8bn of revenue and $343m of adjusted EBITDA in 2026. The deal is funded with cash, debt and equity, with debt commitments from UniCredit and Wells Fargo, and pro forma net leverage is expected below 4 times at closing.
Regulatory approvals and timing
Closing requires merger control, foreign investment and EU Foreign Subsidies Regulation clearances and is expected by 31 December 2026. The long-stop date is 31 August 2027, and Madison would owe a €250m break fee if conditions are not met.
Market context
Founded in 1963, ebm-papst operates in about 40 countries and reported revenue of about €2.24bn in its financial year to March 2026. Madison Air is part of Larry Gies's Madison Industries group, and its shares fell 5% after the announcement.
