Madison Air Solutions Inc. shares advanced 4.3% in pre-market trading after the company announced a restricted equity offering valued at $2.25 billion to finance its pending acquisition of ebm-papst.
The offering consists of approximately 90.1 million Class A common shares priced at $24.97 each, with completion targeted for September 1, 2026, subject to standard conditions. The equity issuance follows a period of pressure on MAIR shares, which had declined to a 52-week intraday low of $24.75.
The proceeds will cover the equity portion of Madison Air’s $5.0 billion acquisition of ebm-papst, a German manufacturer of high-performance airflow systems and electronically commutated fans. The deal, announced on August 17, 2026, is expected to nearly double Madison Air’s addressable market and generate accretive adjusted earnings per share in the first full year post-close.
Management projects annual recurring synergies of $160 million by the third year following the acquisition. Debt financing for the transaction has already been secured through underwriting commitments from UniCredit and Wells Fargo.
Board Chairman Larry Gies committed to purchasing $300 million in Class A common stock personally, while Madison Solutions LLC, an entity under his control, agreed to acquire an additional $320 million in shares. Goldman Sachs and Barclays served as placement agents for the offering.
In broader pre-market trading, major U.S. equity benchmarks showed modest gains, with the S&P 500 up 0.4%, the Dow Jones Industrial Average rising 0.4%, and the Nasdaq Composite advancing 0.9%.
