ESAB Submits Eddyfi Financials and Pro Forma Data for $1.45B Deal
ESAB is trading near its 52-week low of $82.185 (12% above the low).
Summary
ESAB filed the required historical and pro forma financials for its $1.45B Eddyfi acquisition, revealing Eddyfi's 2025 revenue of $238.8M and a net loss from continuing operations, along with pro forma combined results showing the deal's impact on ESAB's earnings.
Key Events · M&A and Partnerships · ESAB
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Eddyfi Financials Disclosed
Eddyfi reported 2025 revenue of $238.8M and a net loss from continuing operations of $6.8M. Q1 2026 revenue was $57.1M with a net loss of $4.2M. The business had $346.3M in goodwill and $189.7M in intangible assets as of year-end 2025.
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Pro Forma Combined Results
Pro forma combined 2025 net sales would have been $3.08B, with net income attributable to ESAB of $198.7M, or $3.01 per share, down from ESAB's standalone $4.14 per share, reflecting added interest and preferred dividends.
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Acquisition Financing Impact
The pro forma statements incorporate $1B in 5.625% senior notes, $175M in mandatory convertible preferred stock (6.50% dividend), and $143M in common stock issued to fund the deal, adding significant interest and dividend costs.
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Purchase Price Allocation
Preliminary fair value of assets acquired includes $735M in intangible assets (customer relationships, technology, trade names) and $805M in goodwill, with the total consideration at $1.49B.
Analysis · ESAB · Technology
Investors now have their first detailed look at the acquired business's standalone performance and the combined company's financial profile, as ESAB filed Eddyfi's audited 2025 and unaudited Q1 2026 financials along with pro forma combined statements. Eddyfi generated $238.8M in revenue and a $6.8M net loss from continuing operations in 2025, followed by $57.1M in revenue and a $4.2M net loss in Q1 2026. The pro forma data shows the acquisition would have added roughly $239M in annual sales but also significant interest costs from the $1B senior notes and preferred stock dividends, reducing pro forma EPS to $3.01 for 2025 versus ESAB's standalone $4.14. This marks the first time investors can assess the deal's accretion/dilution and the acquired company's health.
At the time of this filing, ESAB was trading at $92.01 on NYSE in the Technology sector, with a market capitalization of approximately $5.6B. The 52-week trading range was $82.19 to $137.42. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.