ESAB Corporation announced it has signed a definitive agreement to acquire EWM GmbH, a German-based leader in heavy industrial welding equipment and advanced automation. The acquisition is valued at approximately €275 million. EWM is projected to generate approximately €120 million in revenue in 2025.
This strategic acquisition is expected to address ESAB's product gaps in heavy industrial equipment, strengthening its technological capabilities and positioning the company to offer proprietary, end-to-end workflow solutions. The transaction is anticipated to be EPS accretive in its first year.
The acquisition will be funded through cash on hand and is expected to close in the second half of 2025, subject to customary closing conditions and regulatory approvals. ESAB expects EWM to deliver high-single-digit sales growth, gross margins greater than 45%, and accretive incremental adjusted EBITDA margins, with a return on invested capital (ROIC) exceeding 10% before year five.
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