Madison Air Solutions

Madison Air's stock rose about 10% after a $2.25 billion private placement to finance the acquisition of ebm-papst. The company is selling 90,108,130 class A shares at $24.97 each; closing is expected around Sept. 1, 2026. Madison Air intends to fund the estimated $5.0 billion purchase price with the placement proceeds plus about $2.8 billion of debt and cash and expects pro-forma net leverage of roughly 3.7x after closing. The goal is to reduce net leverage to below 2.5x within two years; the transaction is expected to be accretive to earnings per share in the first year. » Mere på de.investing.com

Madison Air Solutions announces the takeover of German rival EBM-Papst for roughly €4.8 billion; completion is planned for year-end. Combined revenues in 2026 would amount to about $6.65 billion, with adjusted EBITDA around $1.39 billion, while the group EBITDA margin before synergies is expected to fall from 27% to about 21%. The transaction will temporarily raise net debt to 4.0 times adjusted EBITDA, with a target to reduce the ratio to below 2.5 times within two years; planned synergies are to be phased in gradually. The stock plunged after the announcement as investors viewed the near-term margin and leverage risks critically. » Mere på finanzen.net

Family-owned EBM-Papst will be fully acquired by the US firm Madison Air; Madison is paying €4.7 billion. Buyer Madison, whose founder Larry Gies recently raised capital through an IPO, is expanding into a global ventilation group. The sale comes at a favorable time for the owners, but raises questions about the competitiveness of German family-owned companies in the capital markets. » Mere på wiwo.de