Mayville Engineering Company (NYSE: MEC) has announced a definitive agreement to acquire Accu-Fab, LLC from strategic holding company Tide Rock for $140.5 million, with Wells Fargo and JPMorgan Chase providing the acquisition financing.
MEC will fund the transaction through cash and borrowings under its existing $250 million syndicated credit facility with Wells Fargo Bank as administrative agent. Wells Fargo and JPMorgan Chase Bank have committed an additional $50 million in incremental commitments under the credit facility to support ongoing business needs.
The acquisition provides MEC with strategic diversification into high-growth end-markets including critical power infrastructure, data centers, and renewable energy. Accu-Fab operates manufacturing facilities in Raleigh, North Carolina, and Wheeling, Illinois, with approximately 200,000 square feet of manufacturing space.
For 2024, Accu-Fab recorded net sales of approximately $61 million and Adjusted EBITDA of $14 million, representing an Adjusted EBITDA margin exceeding 23%. The company generated free cash flow of approximately $8 million.
“Accu-Fab is a well-established metal fabricator with deep, long-standing relationships with leading OEMs in high-growth, emerging end markets,” said Jag Reddy, MEC’s President and CEO.
At closing, MEC anticipates its pro-forma net debt to Adjusted EBITDA ratio will be approximately 3.0x, with plans to reduce net leverage to 1.5x-2.0x within 18 months. The transaction is expected to close in Q3 2025.
J.P. Morgan Securities serves as financial advisor, with Foley & Lardner as legal counsel to MEC.
