Mayville Engineering Announces $140.5M Accu-Fab Acquisition

Mayville Engineering Company (MEC) has announced a definitive agreement to acquire Accu-Fab, LLC, a metal fabrication firm specializing in advanced manufacturing solutions for OEMs in sectors like critical power infrastructure, data centers, and renewable energy, for $140.5 million. The acquisition is expected to close in the third quarter of 2025 and aims to immediately enhance MEC's Adjusted EBITDA, margins, and earnings per share, while contributing $28 to $32 million in net sales and $6 to $8 million in Adjusted EBITDA by 2025. Accu-Fab operates facilities in Raleigh, North Carolina, and Wheeling, Illinois, and reported net sales of around $61 million with an Adjusted EBITDA of $14 million in fiscal year 2024. MEC will finance the deal using cash and an expanded credit facility, projecting to reduce its net debt to Adjusted EBITDA ratio from about 3.0x to between 1.5x and 2.0x within 18 months after closing. The acquisition aligns with MEC's strategic plan to diversify into high-growth markets and achieve revenue synergies of $3 to $5 million and cost savings of $1 million by 2026. CEO Jag Reddy emphasized the strategic fit and long-term value creation potential of the deal, which has received positive analyst outlooks and brokerage firm endorsements.