Madison Air Solutions Corporation’s shares jumped 10% on Tuesday after the company announced a $2.25 billion private placement to help finance its $5 billion acquisition of ebm-papst Mulfingen GmbH & Co. KG and related entities.
The New York-listed firm will sell 90,108,130 Class A common shares at $24.97 per share to raise the funds, with Goldman Sachs & Co. LLC acting as lead placement agent and Barclays Capital Inc. as a placement agent. The transaction is expected to close on or about September 1, 2026, subject to customary conditions.
Larry Gies, Madison Air’s board chairman, and Madison Solutions LLC, an entity affiliated with Gies, have committed to purchasing $300 million and $320 million of the shares, respectively. The acquisition itself is expected to close around year-end, pending regulatory approvals and other standard closing conditions.
The deal will be funded through the private placement alongside approximately $2.8 billion in debt and cash. Pro forma net leverage is projected at about 3.7 times at closing, with a targeted reduction to below 2.5 times on a trailing 12-month basis within two years post-close. The acquisition is also expected to be accretive to earnings per share in the first year following completion.
Shares purchased by Gies and Madison Solutions are subject to transfer restrictions until the one-year anniversary of the private placement closing, with certain exceptions noted.
