Mayville Engineering Company, a leading value-added provider of design, prototyping and manufacturing solutions serving diverse end-markets, announced a definitive agreement to acquire Accu-Fab, LLC 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.
MEC intends to fund the transaction through cash and borrowings under its existing $250 million syndicated credit facility with Wells Fargo Bank, as administrative agent. Wells Fargo Bank and JPMorgan Chase Bank 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.
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.”