Latest news with #Accu-Fab
Business Wire
01-07-2025
- Business
- Business Wire
Mayville Engineering Company Completes Acquisition of Accu‑Fab, LLC
MILWAUKEE--(BUSINESS WIRE)--Mayville Engineering Company, Inc. (NYSE: MEC) (the 'Company' or 'MEC'), a leading value-added provider of design, prototyping, and manufacturing solutions serving diverse end-markets, today announced the completion of the previously announced acquisition of Accu-Fab, LLC ('Accu-Fab') from strategic holding company Tide Rock, effective July 1, 2025. Under the terms of the agreement, the Company paid total cash consideration of $140.5 million, subject to customary adjustments including a net working capital adjustment. The transaction was funded through availability on MEC's existing $350 million credit facility. Accu-Fab is a vertically integrated manufacturing partner providing technology-driven, cutting-edge metal fabrication solutions to large OEMs. Accu-Fab offers value-added services that include design, engineering, sheet metal fabrication and integration, and specialized finishing. Through the acquisition of Accu-Fab, MEC enhances its strategic position by broadening its customer base and accelerating its entry into the rapidly growing critical power infrastructure and data center end markets. Leveraging MEC's broader geographic footprint, the combined business platform is well-positioned to meet rising demand within these end markets and significantly expands MEC's serviceable addressable market. 'The addition of Accu-Fab marks a significant milestone in our MBX value creation strategy,' said Jag Reddy, President and Chief Executive Officer. 'This immediately accretive acquisition, excluding transaction costs, enhances our presence in high-growth, mission-critical markets and expands our customer base in sectors with strong, long-term demand drivers. Our partnership with Accu-Fab brings together two high-performing teams with a shared focus on quality, service, and innovation. We anticipate a smooth integration and are excited about the long-term value we'll create for our customers and shareholders.' ABOUT MAYVILLE ENGINEERING COMPANY Founded in 1945, MEC is a leading U.S.-based, vertically-integrated, value-added manufacturing partner providing a full suite of manufacturing solutions from concept to production, including design, prototyping and tooling, fabrication, aluminum extrusion, coating, assembly and aftermarket components. Our customers operate in diverse end markets, including heavy- and medium-duty commercial vehicles, construction & access equipment, powersports, agriculture, military and other end markets. Along with process engineering and development services, MEC maintains an extensive manufacturing infrastructure with 23 facilities, of which 22 are in use, across seven states. These facilities make it possible to offer conventional and CNC (computer numerical control) stamping, shearing, fiber laser cutting, forming, drilling, tapping, grinding, tube bending, machining, welding, assembly, and logistic services. MEC also possesses a broad range of finishing capabilities including shot blasting, e-coating, powder coating, wet spray and military grade chemical agent resistant coating (CARC) painting. For more information, please visit FORWARD-LOOKING STATEMENTS This press release includes forward-looking statements that reflect plans, estimates and beliefs. Such statements involve risk and uncertainties. Actual results may differ materially from those contemplated by these forward-looking statements as a result of various factors. Important factors that could cause actual results or events to differ materially from those expressed in forward-looking statements include, but are not limited to: macroeconomic conditions, including inflation, elevated interest rates, labor availability, material cost pressures and inconsistent demand, have had, and may continue to have, a negative impact on our business, financial condition, cash flows and results of operations (including future uncertain impacts); risks relating to developments in the industries in which our customers operate; risks related to scheduling production accurately and maximizing efficiency; our ability to realize net sales represented by our awarded business; failure to compete successfully in our markets; our ability to maintain our manufacturing, engineering and technological expertise; the loss of any of our large customers or the loss of their respective market shares; volatility in the prices or availability of raw materials critical to our business; geopolitical and economic developments, including foreign trade relations and associated tariffs; risks related to entering new markets; our ability to recruit and retain our key executive officers, managers and trade-skilled personnel; manufacturing risks, including delays and technical problems, issues with third-party suppliers, environmental risks and applicable statutory and regulatory requirements; our ability to successfully identify or integrate acquisitions; our ability to develop new and innovative processes and gain customer acceptance of such processes; risks related to our information technology systems and infrastructure; results of legal disputes, including product liability, intellectual property infringement and other claims; risks associated with our capital-intensive industry; risks related to our treatment as an S Corporation prior to the consummation of our initial public offering; risks related to our employee stock ownership plan's treatment as a tax-qualified retirement plan; our ability to remediate the material weakness in internal control over financial reporting identified in preparing our financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2024, and to subsequently maintain effective internal control over financial reporting; and other factors described in 'Risk Factors' in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, as such may be amended or supplemented in our subsequently filed Quarterly Reports on Form 10-Q. This discussion should be read in conjunction with our audited consolidated financial statements included in the Company's previously filed Annual Report on Form 10-K for the year ended December 31, 2024. We undertake no obligation to update or revise any forward-looking statements after the date on which any such statement is made, whether as a result of new information, future events or otherwise, except as required by federal securities laws.
Yahoo
29-05-2025
- Business
- Yahoo
Mayville Engineering Company, Inc. (MEC) Seals $140M Accu-Fab Acquisition Deal
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. (NYSE:MEC)'s Adjusted EBITDA, which at present stands at $52.42 million. Jag Reddy, CEO of Mayville Engineering Company, Inc. (NYSE:MEC), 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. (NYSE:MEC) 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. While we acknowledge the potential of MEC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MEC and that has 100x upside potential, check out our report about the READ NEXT: 10 Unstoppable Dividend Stocks to Buy Now and 11 Oversold Global Stocks to Buy According to Hedge Funds Disclosure: None. Sign in to access your portfolio
Yahoo
28-05-2025
- Business
- Yahoo
Mayville Engineering Company, Inc. (MEC) Seals $140M Accu-Fab Acquisition Deal
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. (NYSE:MEC)'s Adjusted EBITDA, which at present stands at $52.42 million. Jag Reddy, CEO of Mayville Engineering Company, Inc. (NYSE:MEC), 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. (NYSE:MEC) 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. While we acknowledge the potential of MEC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MEC and that has 100x upside potential, check out our report about the READ NEXT: 10 Unstoppable Dividend Stocks to Buy Now and 11 Oversold Global Stocks to Buy According to Hedge Funds Disclosure: None.
Business Wire
27-05-2025
- Business
- Business Wire
Mayville Engineering Company Announces Definitive Agreement to Acquire Accu-Fab, LLC
MILWAUKEE--(BUSINESS WIRE)--Mayville Engineering Company (NYSE: MEC) (the 'Company' or 'MEC'), a leading value-added provider of design, prototyping and manufacturing solutions serving diverse end-markets, today announced a definitive agreement to acquire Accu-Fab, LLC ('Accu-Fab') from strategic holding company Tide Rock for a total consideration of $140.5 million, plus ordinary and customary adjustments. The proposed acquisition is expected to close during the third quarter 2025, subject to the satisfaction of customary closing conditions. Accu-Fab is a vertically integrated contract manufacturer providing technology-driven, cutting-edge metal fabrication solutions to large OEMs. Accu-Fab offers value-added services that include design, engineering, sheet metal fabrication and integration, and specialized finishing. Accu-Fab serves as a supplier to leading OEMs in the critical power infrastructure, data center and renewable energy end-markets. Accu-Fab operates state-of-the-art manufacturing facilities at two locations, Raleigh, North Carolina and Wheeling, Illinois, which include approximately 200,000 square-feet of manufacturing space. 'Accu-Fab is a well-established metal fabricator with deep, long-standing relationships with leading OEMs in high-growth, emerging end markets that are highly complementary to MEC's existing growth platform,' said Jag Reddy, President and Chief Executive Officer. 'Upon closing of the acquisition, Accu-Fab will be immediately accretive to our Adjusted EBITDA, Adjusted EBITDA margins and Adjusted Earnings Per Share (EPS), while creating substantial upside to our long-term value creation potential.' 'Additionally, this acquisition strengthens our commercial reach by accelerating entry into attractive new markets—an explicit priority within our MBX value creation framework,' continued Reddy. 'Accu-Fab's strong customer relationships and value-added services present a compelling opportunity to leverage scale, operational discipline, and commercial infrastructure to drive meaningful revenue and cost synergies.' 'Demand for critical power infrastructure and industrial-grade metal components is being propelled by durable multi-year growth drivers, including large-scale investment in data center infrastructure and the reshoring of U.S. manufacturing,' stated Reddy. 'Through the acquisition of Accu-Fab, MEC is able to gain immediate access to end markets shaped by these trends, while also adding incremental domestic production capacity to support growing demand in key geographies. Over the next three years, we expect to realize significant operational and commercial synergies, consistent with our commitment to margin expansion, capital discipline, and sustained profitable growth.' TRANSACTION OVERVIEW Accu-Fab brings to MEC a track record of profitable growth and operational excellence. For the full-year 2024, Accu-Fab recorded total net sales and Adjusted EBITDA of approximately $61 million and $14 million, respectively, resulting in an Adjusted EBITDA margin of more than 23%. For the same period, Accu-Fab generated free cash flow of approximately $8 million, or more than 55% of Adjusted EBITDA. Upon closing, the transaction is expected to be immediately accretive to MEC's Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EPS, which excludes one-time transaction costs. MEC intends to fund the transaction through cash and borrowings under its existing $250 million syndicated credit facility with Wells Fargo Bank, National Association, as administrative agent. Wells Fargo Bank and JPMorgan Chase Bank, N.A. have committed an additional $50 million in incremental commitments under the credit facility, subject to customary conditions, to support the ongoing needs of the business, which will be documented as an amendment to the existing credit facility. At closing, MEC anticipates its pro-forma ratio of net debt to Adjusted EBITDA will be approximately 3.0x. Given the expected cash generation of the combined company, MEC intends to reduce its net leverage within the first eighteen months after the closing of the transaction to 1.5x – 2.0x. Based on current expectations and market conditions, the Company expects that the Accu-Fab acquisition will contribute between $28 – $32 million of net sales and between $6 – $8 million in Adjusted EBITDA for 2025. STRATEGIC RATIONALE Accu-Fab provides MEC meaningful diversification into high-growth adjacent end-markets. Consistent with MEC's stated strategic commitment to commercial growth, Accu-Fab provides diversification and expansion into high-growth adjacent end-markets with demand supported by substantial multi-year growth trends. These end-markets include critical power infrastructure, data centers and renewable energy. Accu-Fab brings a superior margin profile to MEC. The acquisition of Accu-Fab is expected to be immediately accretive to MEC's Adjusted EBITDA and Adjusted EBITDA the three-years ended 2024, Accu-Fab has generated an average Adjusted EBITDA margin of 20.2% compared to MEC's average Adjusted EBITDA margin of 11.2%, during the same period. Integrated platform creates opportunities for revenue synergies and further market share growth. MEC's scale and operational efficiencies provide the opportunity to leverage Accu-Fab's customer relationships and expertise to meet white-space within Accu-Fab's end-markets. In addition, MEC will be able to leverage its large domestic footprint to capitalize on opportunities to expand share-of-wallet with Accu-Fab's existing customers across a broader range of geographies. In total, MEC believes that these opportunities represent approximately an additional $3 – $5 million in potential annual revenue synergies over the next twenty-four months. Significant cost synergy opportunity through implementation of MBX framework. Over the last few years, MEC has successfully implemented a strategic operating platform, which is built on operational excellence and a culture of continuous improvement. By implementing this framework across Accu-Fab's footprint, the Company believes it can generate approximately $1.0 million in annual cost synergies and improved utilization by 2026. ADVISORS J.P. Morgan Securities LLC is serving as financial advisor, The Keystone Group is serving as a strategic consultant, and Foley & Lardner LLP is serving as legal counsel to Mayville Engineering Company. ACCU-FAB ACQUISITION CONFERENCE CALL A conference call will be held today at 9:00 a.m. Eastern Time to discuss MEC's acquisition of Accu-Fab, LLC and conduct a question-and-answer session. A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of the MEC corporate website at To listen to the live webcast, go to the site at least 15 minutes prior to the scheduled start time to register, download and install any necessary audio software. For telephone access to the conference, call (833) 470-1428 within the United States, or call (833) 950-0062 when dialing from Canada and please use the Access Code: 659793. ABOUT MAYVILLE ENGINEERING COMPANY Founded in 1945, MEC is a leading U.S.-based, vertically-integrated, value-added manufacturing partner providing a full suite of manufacturing solutions from concept to production, including design, prototyping and tooling, fabrication, aluminum extrusion, coating, assembly and aftermarket components. Our customers operate in diverse end markets, including heavy- and medium-duty commercial vehicles, construction & access equipment, powersports, agriculture, military and other end markets. Along with process engineering and development services, MEC maintains an extensive manufacturing infrastructure with 23 facilities, of which 22 are in use, across seven states. These facilities make it possible to offer conventional and CNC (computer numerical control) stamping, shearing, fiber laser cutting, forming, drilling, tapping, grinding, tube bending, machining, welding, assembly, and logistic services. MEC also possesses a broad range of finishing capabilities including shot blasting, e-coating, powder coating, wet spray and military grade chemical agent resistant coating (CARC) painting. For more information, please visit ABOUT ACCU-FAB, LLC Accu-Fab is an industry-leading metal solutions contract manufacturer with value-added capabilities including design and engineering services, full fabrication and assembly, supply chain management and specialized finishing. Accu-Fab's advanced capabilities include metal fabrication, precision forming, Class A finishing and electromechanical assembly, ensuring on-time delivery and high-performance results. Accu-Fab serves critical power infrastructure, data centers, renewable energy and other diverse end markets. FORWARD-LOOKING STATEMENTS This press release includes forward-looking statements that reflect plans, estimates and beliefs. Such statements involve risk and uncertainties. Actual results may differ materially from those contemplated by these forward-looking statements as a result of various factors. Important factors that could cause actual results or events to differ materially from those expressed in forward-looking statements include, but are not limited to: macroeconomic conditions, including inflation, elevated interest rates, labor availability, material cost pressures and inconsistent demand, have had, and may continue to have, a negative impact on our business, financial condition, cash flows and results of operations (including future uncertain impacts); risks relating to developments in the industries in which our customers operate; risks related to scheduling production accurately and maximizing efficiency; our ability to realize net sales represented by our awarded business; failure to compete successfully in our markets; our ability to maintain our manufacturing, engineering and technological expertise; the loss of any of our large customers or the loss of their respective market shares; volatility in the prices or availability of raw materials critical to our business; geopolitical and economic developments, including foreign trade relations and associated tariffs; risks related to entering new markets; our ability to recruit and retain our key executive officers, managers and trade-skilled personnel; manufacturing risks, including delays and technical problems, issues with third-party suppliers, environmental risks and applicable statutory and regulatory requirements; our ability to successfully identify or integrate acquisitions; our ability to develop new and innovative processes and gain customer acceptance of such processes; risks related to our information technology systems and infrastructure; results of legal disputes, including product liability, intellectual property infringement and other claims; risks associated with our capital-intensive industry; risks related to our treatment as an S Corporation prior to the consummation of our initial public offering; risks related to our employee stock ownership plan's treatment as a tax-qualified retirement plan; our ability to remediate the material weakness in internal control over financial reporting identified in preparing our financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2024, and to subsequently maintain effective internal control over financial reporting; and other factors described in 'Risk Factors' in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, as such may be amended or supplemented in our subsequently filed Quarterly Reports on Form 10-Q. This discussion should be read in conjunction with our audited consolidated financial statements included in the Company's previously filed Annual Report on Form 10-K for the year ended December 31, 2024. We undertake no obligation to update or revise any forward-looking statements after the date on which any such statement is made, whether as a result of new information, future events or otherwise, except as required by federal securities laws.
