Madison Air Solutions, the Chicago-based owner of Big Ass Fans, Broan-NuTone and Reznor, said Monday it has agreed to acquire Germany's ebm-papst, a maker of fans and motor systems, in a deal valued at $5.4 billion in enterprise value, or $5.0 billion net of expected future tax savings.
Ebm-Papst, founded in 1963 and headquartered in Mulfingen, has more than 250 million fans installed across roughly 40 countries and holds over 1,200 patents on its airflow technology. The company is expected to generate about $2.8 billion in revenue in 2026, with adjusted EBITDA of $343 million, a 12% margin. Madison Air is paying 14.6 times the target's forecast 2026 EBITDA, or roughly 10 times once projected synergies are included.
Data Centers Drive the Rationale
The deal expands Madison Air's addressable market by roughly $30 billion, the company said, deepening its position in airflow technology for mission-critical applications, including cooling systems for the data centers powering the artificial-intelligence buildout. Madison Air expects $160 million in annual run-rate cost synergies by the third year, driven by procurement savings and its 80/20 operating model.
[This] will help more customers improve uptime, efficiency, compliance and productivity in mission-critical environments.
Jill Wyant, President and CEO, Madison Air
[Ebm-papst is joining an organization that] values our people, our culture and our technology.
Klaus Geißdörfer, CEO, ebm-papst
The transaction will be funded through a mix of cash on hand, new debt and equity. Madison Air has secured debt commitments from UniCredit and Wells Fargo, and the agreement carries no financing condition. The company expects net leverage below 4.0 times at closing, targeting a reduction to roughly 2.5 times within two years, and is also weighing a registered equity offering.
Investors Question the Price
Madison Air shares fell roughly 5% following the announcement, on volume well above the daily average, as investors weighed the multiple being paid against the leverage the company is taking on and the execution risk in hitting its synergy targets. Madison Air has said the deal is expected to be accretive to adjusted earnings per share in its first full year after closing.
The acquisition is expected to close around year-end 2026, subject to regulatory approvals and other customary closing conditions. It comes as data-center operators race to secure cooling capacity to keep pace with AI computing demand, a dynamic that has drawn a wave of capital into thermal-management and airflow suppliers over the past year.
