Mayville Engineering Agrees To Acquire Accu-fab From Tide Rock For $140.5M Plus Ordinary And Customary Adjustments

Author: Benzinga Newsdesk | May 27, 2025 05:07am

• Acquisition to provide MEC with strategic diversification into high-growth end-markets, including critical power infrastructure, data center and renewable energy
• Combined platform adds strategically located facilities and enhances value-added capabilities
• Expected to be immediately accretive to Adjusted EBITDA, Adjusted EBITDA margin and Adjusted Earnings Per Share
• Accu-Fab brings to MEC a track record of profitable growth and operational excellence. For the full-year 2024, Accu-Fab recorded total net sales and Adjusted EBITDA of approximately $61 million and $14 million, respectively, resulting in an Adjusted EBITDA margin of more than 23%. For the same period, Accu-Fab generated free cash flow of approximately $8 million, or more than 55% of Adjusted EBITDA. Upon closing, the transaction is expected to be immediately accretive to MEC's Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EPS, which excludes one-time transaction costs.
• MEC intends to fund the transaction through cash and borrowings under its existing $250 million syndicated credit facility with Wells Fargo Bank, National Association, as administrative agent. Wells Fargo Bank and JPMorgan Chase Bank, N.A. have committed an additional $50 million in incremental commitments under the credit facility, subject to customary conditions, to support the ongoing needs of the business, which will be documented as an amendment to the existing credit facility. At closing, MEC anticipates its pro-forma ratio of net debt to Adjusted EBITDA will be approximately 3.0x. Given the expected cash generation of the combined company, MEC intends to reduce its net leverage within the first eighteen months after the closing of the transaction to 1.5x – 2.0x.
• Based on current expectations and market conditions, the Company expects that the Accu-Fab acquisition will contribute between $28 – $32 million of net sales and between $6 – $8 million in Adjusted EBITDA for 2025.

Posted In: MEC