US company, Madison Air Solutions has entered into a definitive agreement to acquire ebm-papst at an enterprise purchase price of $US5.4 billion, or $5.0 billion net of future tax savings.
Headquartered in Mulfingen, Germany and founded in 1963, ebm-papst is a leading global
supplier of high-performance airflow technology and a pioneer in integrated electronically commutated ("EC") fan and motor systems.
There are more than 250 million ebm-papst fans installed worldwide including Australia where the company has been operating for more than two decades.
Its highly engineered products are specified early in the HVACR design process, helping customers improve energy efficiency, enhance reliability and reduce total lifecycle costs across mission-critical applications.
Operating in approximately 40 countries, ebm-papst serves a diversified global customer base and is expected to generate approximately $US2.8 billion of revenue and approximately $343 million of adjusted EBITDA in 2026.
Madison Air president & CEO, Jill Wyant, said the company is excited about the opportunities this acquisition creates for customers, employees and shareholders.
“As a longstanding ebm-papst customer, we have a deep appreciation for its integrated airflow technology, custom engineering expertise and talented team, which complement our expertise in mission-critical applications and market reach,” Wyant said.
“Fans enable the airflow performance our customers depend on every day. By combining ebm-papst's differentiated technology with Madison Air's application expertise, trusted customer relationships and proven operating model, we will help more customers improve uptime, efficiency, compliance and productivity in mission-critical environments.
“The acquisition nearly doubles our addressable market, broadens our aftermarket and services opportunity, and further strengthens our long-term growth profile. Together, we are confident we can accelerate growth, enhance performance and create significant long-term value for shareholders."
Madison Air founder & board chair, Larry Gies, said the acquisition will make Madison Air a stronger company capable of serving more customers, pursuing a larger opportunity and creating enduring value for many years to come.
ebm-papst CEO, Klaus Geiβdörfer, said since the company’s founding more than six decades ago, ebm-papst has built a reputation on engineering excellence, innovation and earning customer trust.
“Madison Air shares that philosophy and has demonstrated a long-term commitment to supporting entrepreneurial businesses. We are excited to join an organisation that values our people, our culture and our technology, and we look forward to what we can accomplish together,” he said.
The deal will enable the combined company to deliver more holistic solutions throughout the full product lifecycle to solve complex air quality and energy efficiency challenges for customers.
The transaction adds approximately $30 billion to Madison Air's addressable market and broadens its commercial, aftermarket and services opportunities through a larger installed base, broader customer relationships and expanded channel presence.
Madison Air expects to realise $160 million in annual run-rate cost synergies by year three, driven by its proven 80/20 operating model, the combined company's scale, procurement savings and operational efficiencies.
The effective enterprise purchase price is $5.0 billion. Madison Air intends to fund the transaction through a combination of cash on hand and debt and equity financing.
The transaction is expected to close by the end of 2026.
Madison Air is an air quality solutions provider serving priority commercial and residential markets. Through its portfolio of trusted brands, including Addison, AprilAire, Big Ass Fans, Broan-NuTone, Nortek Air Solutions, Nortek Data Centre Cooling and Reznor, the company helps customers improve performance, protect critical assets and create healthier indoor environments.