Madison Air Solutions to Buy ebm-papst in $5.8B Deal, Expanding Global Airflow Reach

Madison Air Solutions will acquire Germany-based ebm-papst for $5.8 billion in total enterprise value, with the all-cash deal expected to close around year-end pending customary conditions. The acquisition would expand Madison Air’s addressable market to approximately $70 billion , add more than 250 million installed fans, and strengthen its global presence in mission-critical markets such as data centers, healthcare and semiconductor manufacturing. Madison Air expects about $160 million in annual cost synergies by the end of the third year, with low-single-digit adjusted EPS accretion in the first full year and plans to reduce leverage from below four times at closing to roughly 2.5 times within two years.

Madison Air Solutions NYSE: MAIR said it has signed an agreement to acquire ebm-papst, a Germany-based provider of high-performance airflow technology, in a transaction valued at $5.8 billion in total enterprise value. The deal includes approximately $375 million of non-interest-bearing operating liabilities that Madison Air said were negotiated as a purchase-price reduction. The company placed the enterprise purchase price at $5.4 billion, or $5 billion after expected future tax savings. Madison Air expects the transaction to close around year-end, subject to customary conditions.

Chief Executive Officer Jill Wyant said the acquisition combines Madison Air’s air-handling and application expertise with ebm-papst’s electronically commutated, or EC, fan and motor systems. EC fans use efficient motors and intelligent controls to adjust airflow based on demand, which Madison Air said can improve performance, reliability, energy efficiency and noise levels. “Fans are the enabler of nearly every airflow system we serve and are often a limiting factor in overall system performance, efficiency, and cost,” Wyant said. Madison Air said a fan can account for less than 10% of a system’s upfront capital cost, while energy consumption can represent up to 80% of total ownership costs over the system’s life. The company expects the combination to improve its ability to serve mission-critical applications, including healthcare facilities, data centers, semiconductor manufacturing, clean rooms, pharmaceutical environments and advanced manufacturing.

ebm-papst, founded in 1963 and headquartered in Mulfingen, Germany, operates in about 40 countries. It is expected to generate approximately $2.8 billion in revenue and $343 million in adjusted EBITDA during 2026, according to Madison Air. The acquired company derives about 92% of sales directly from customers. Its top 50 customers represented approximately 47% of 2025 sales, while no individual customer accounted for more than roughly 4% of revenue, Madison Air said. The acquisition is expected to increase Madison Air’s addressable market by approximately $30 billion, to about $70 billion on a pro forma basis from roughly $40 billion currently. It will also nearly double the company’s direct channel presence and add an installed base of more than 250 million fans, supporting potential replacement, retrofit, service and aftermarket opportunities.

Madison Air said its effective $5 billion enterprise purchase price equates to 14.6 times ebm-papst’s forecast 2026 EBITDA, or about 10 times EBITDA when expected cost synergies are included. The company expects to generate approximately $160 million in annual run-rate cost synergies by the end of the third year after closing, including about $40 million during the first 12 months. The identified savings are expected to come fro...