ESAB to Buy Eddyfi Technologies in $1.45 Billion Deal
Acquisition accelerates ESAB’s expansion into inspection and monitoring with high-margin, high-growth instrumentation technology.
**ESAB Corporation (ESAB)** agreed to acquire **Eddyfi Technologies** in a $1.45 billion transaction designed to extend the industrial compounder’s end-to-end workflow solutions into advanced inspection and monitoring.
The deal values Eddyfi at approximately 14.5 times its projected 2026 adjusted EBITDA of $100 million, including $20 million of expected annualized run-rate synergies. ESAB plans to fund the purchase with a mix of cash on hand, debt, and $318 million of fully committed equity. The transaction is expected to close in mid-2026, pending customary regulatory and closing conditions.
ESAB said the acquisition would expand its total addressable market by roughly $5 billion and accelerate its shift toward a portfolio that is faster growing, higher margin, and less cyclical. Eddyfi’s instrumentation and monitoring technology is expected to deliver high-single-digit organic growth with gross margins exceeding 65%. The combination is also projected to strengthen ESAB’s exposure to high-growth end markets, including aerospace and defense, nuclear, energy, and civil infrastructure.
"This acquisition marks an important milestone in our intentional strategy to extend into the inspection and monitoring space, a mission-critical market where we see an impressive long-term runway for compounding growth at attractive margins," said Shyam Kambeyanda, President and CEO of ESAB. "With the addition of Eddyfi, ESAB becomes the unrivaled provider of a full workflow solution spanning fabrication, inspection, and monitoring," he added.
Eddyfi Technologies, a global leader in non-destructive testing instrumentation, provides inspection technologies for critical assets across industries such as nuclear power generation, aerospace, defense, civil infrastructure, oil and gas, and transportation. Headquartered in Quebec City, Eddyfi employs more than 1,000 people and serves customers in over 110 countries. The company’s advanced sensing, automated remote monitoring, robotics, and software capabilities are expected to complement ESAB’s existing workflow solutions, enhancing safety, productivity, and operational efficiency for customers.
The acquisition follows a pattern of consolidation in the industrial inspection and monitoring sector. In January 2025, **Wabtec Corporation (WAB)** acquired Evident’s Inspection Technologies division for $1.78 billion, citing a similar strategic rationale of expanding into high-margin, high-growth instrumentation markets. Earlier this year, **ESCO Technologies Inc. (ESE)** announced a $2.35 billion deal to acquire Megger Group Limited, a provider of test and monitoring solutions for electric power assets, further signaling robust M&A activity in mission-critical inspection and monitoring technologies.
ESAB expects the transaction to result in a net leverage ratio of less than 3.0x by year-end 2026. The company has also committed to maintaining Eddyfi’s workforce and head office in Quebec City. Upon integration, ESAB plans to deploy its Business Excellence System (EBXai) to unlock additional operational and commercial benefits, reinforcing its disciplined capital allocation framework.