Madison Air Solutions’ stock advanced 4.3% in pre-market trading on Tuesday after the company secured a $2.25 billion private placement to finance its pending $5 billion acquisition of ebm-papst.
The placement covers the equity portion of the deal, with approximately 90.1 million Class A common shares issued at $24.97 per share. Placement agents Goldman Sachs and Barclays structured the offering, which is expected to close around September 1, 2026, subject to customary conditions.
The acquisition of ebm-papst, a German manufacturer of high-performance airflow and fan technology, was announced on August 17, 2026. Management said the deal nearly doubles Madison Air’s addressable market and is expected to be accretive to adjusted earnings per share in the first full year post-close. The company targets annual run-rate synergies of $160 million by the third year following completion.
Chairman Larry Gies committed $300 million of his own capital to the placement, while Madison Solutions LLC, an entity controlled by Gies, agreed to purchase an additional $320 million. Debt financing for the acquisition is being arranged by UniCredit and Wells Fargo.
The stock had retreated since the initial announcement amid concerns over financing and dilution, hitting an intraday 52-week low of $24.75. In broader pre-market trade, the S&P 500 was up 0.4%, the Dow Jones gained 0.4%, and the Nasdaq advanced 0.9%.
