Mayville Engineering Company, Inc. (NYSE:MEC) has reached a definitive agreement to acquire Accu-Fab Inc. from Tide Rock Holdings LLC for $140.5 million. The all-cash transaction will be financed through borrowings under MEC’s existing $250 million syndicated credit facility, supported by Wells Fargo and JPMorgan Chase. Following regulatory approvals and customary closing conditions, the acquisition is slated to close in Q3 2025.
A close-up of a heavy-duty machining tool forming a steel component.
The contract manufacturer, Accu-Fab, is known for precision metalwork and serves sectors including renewable energy and data infrastructure. With strong margins and long-term client relationships, Accu-Fab’s acquisition is projected to be an immediate accretive to Mayville Engineering Company, Inc.’s Adjusted EBITDA, which at present stands at $52.42 million.
Jag Reddy, CEO of Mayville Engineering Company, Inc., perceives the acquisition as a strategic fit with the company’s long-term growth plan. According to the CEO, the acquisition has the potential to expand operations in markets with high-growth opportunities and deliver margin-enhancing synergies.
In terms of numbers, Accu-Fab generated approximately $61 million in revenue and $14 million in Adjusted EBITDA in 2024. Mayville Engineering Company, Inc. expects the acquisition to contribute to a sales range of $28 and $32 million and an Adjusted EBITDA range of $6 and $8 million in 2025. Further operational efficiencies involve a $1 million annual cost savings by 2026.
Despite a Citi adjustment lowering the price target from $18 to $16 on April 14, analysts continue to hold a Buy rating for the company with a consensus target of $18.50. Parallel to the acquisition talks, the company’s stock performance has increased by 26.82% over the past month.
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