Milwaukee-based
Mayville Engineering Company plans to acquire Raleigh, North Carolina-based metal fabrication firm
Accu-Fab, LLC for $120.5 million, according to a Tuesday announcement.
Accu-Fab, currently owned by California-based
Tide Rock Holdings, is a vertically integrated contract manufacturer providing metal fabrication solutions to large original equipment manufacturers (OEMs).
In addition to its headquarters, Accu-Fab has a second location in Wheeling, Illinois. The company's 200,000-square-feet of manufacturing space is used to supply OEMs in the “critical power infrastructure, data center and renewable energy end markets,” according to Tuesday’s release.
[caption id="attachment_612390" align="alignleft" width="300"]
Jag Reddy, CEO of Mayville Engineering Company[/caption]
“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 at Mayville Engineering.
MEC plans to fund the acquisition through cash and borrowings under its existing $250 million syndicated credit facility with Wells Fargo Bank.
Wells Fargo Bank and JPMorgan Chase Bank have also committed an additional $50 million in incremental commitments under the credit facility. The acquisition is expected to close in the third quarter of 2025.
In 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%.
“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,” said 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.”
Mayville Engineering is a Tier 1 supplier to many OEMs in commercial vehicle, construction, powersports, agriculture and military end markets.
More articles about Mayville Engineering Co.:
