ESAB to acquire German welding equipment maker EWM for €275 million

NORTH BETHESDA, Md. - ESAB Corporation (NYSE:ESAB), a $7.18 billion market cap welding equipment manufacturer with a "GOOD" financial health rating according to InvestingPro, announced Thursday it has signed a definitive agreement to acquire EWM GmbH, a German-based manufacturer of heavy industrial welding equipment and advanced automation, for approximately €275 million.

The transaction is expected to close in the second half of 2025, subject to regulatory approvals and customary closing conditions. ESAB plans to fund the acquisition through cash on hand, supported by its strong liquidity position with a healthy current ratio of 1.91.

EWM is projected to generate approximately €120 million in revenue in 2025. ESAB expects the acquisition to be accretive to adjusted earnings per share in the first year and achieve a return on invested capital exceeding 10% before the fifth year.

"EWM fully addresses our product gaps in heavy industrial equipment, strengthening our technological capabilities," said Shyam P. Kambeyanda, President and CEO of ESAB Corporation, in a statement released by the company.

Founded in 1957, EWM is described as Germany’s leading provider of premium arc welding technology solutions. The company employs approximately 800 people across 12 German and 11 international locations, with six production facilities worldwide.

ESAB expects the acquisition to help accelerate its equipment sales growth, particularly in North America, while also capitalizing on improving market conditions in Europe. Following the transaction, ESAB projects its net leverage ratio will be approximately 2.0x. The company currently generates $2.73 billion in annual revenue and maintains an EBITDA of $534.28 million. InvestingPro analysis reveals 5 additional key insights about ESAB’s financial performance and growth potential, available to subscribers.

The company stated that EWM’s customer base and distribution channels complement ESAB’s existing network, which is expected to extend the combined market reach.

ESAB Corporation, founded in 1904 and headquartered in North Bethesda, Maryland, employs approximately 9,300 people and serves customers in about 150 countries. For detailed analysis and comprehensive insights into ESAB’s financial performance, valuation metrics, and growth prospects, investors can access the full Pro Research Report on InvestingPro, which provides expert analysis of what really matters for this global industrial leader.

In other recent news, ESAB Corp reported impressive financial results for the first quarter of 2025, exceeding analysts’ expectations with an earnings per share of $1.25, surpassing the forecast of $1.20. The company achieved a revenue of $678.14 million, which was significantly higher than the anticipated $632.75 million. ESAB also recorded a record first-quarter adjusted EBITDA margin of 19.8%, highlighting its strong operational performance. Meanwhile, Stifel reiterated its Buy rating on ESAB, maintaining a price target of $126, after meeting with the company’s executives and expressing confidence in the demand outlook and internal improvement opportunities. Additionally, ESAB announced the approval of its Amended and Restated 2022 Omnibus Incentive Plan, which includes changes such as extending the plan’s termination date and updating recoupment provisions. The company’s recent acquisition of Bavaria contributed to revenue growth and is expected to be EPS neutral in the first year, with significant synergy opportunities anticipated. These developments reflect ESAB’s strategic focus on growth and operational excellence.

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