Madison Air raises $2.25B in private placement for ebm-papst acquisition
Money MovesThe 90.1-million-share offering funds the equity side of the $5 billion deal, with closing set for September 1
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Overview
Updated 56 minutes agoMadison Air is selling $2.25 billion of its own stock, priced at $24.97 a share, to fund its $5 billion purchase of German fan-maker ebm-papst. Chairman Larry Gies and his affiliate are buying $620 million of the offering themselves.
The private placement, expected to close September 1, removes the biggest financing question hanging over the deal. Madison Air shares rose about 10% on the news, and the acquisition is targeted to close around year-end pending regulatory approvals.
Why it matters
The $5 billion takeover of the world's leading fan-technology maker would reshape the HVAC equipment market that serves nearly every commercial building.
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People Involved
Organizations Involved
Global provider of air quality solutions built by combining industrial air businesses.
Leading global supplier of airflow technology and pioneer in electronically commutated (EC) fan and motor systems.
The private holding company that controls Madison Air through its ownership stake.
Timeline
1963 December 2026
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Acquisition targeted to close around year-end
Upcoming ProjectionClose pending regulatory approvals; expected to be accretive to earnings per share in the first year.
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Private placement expected to close
Upcoming FundingOffering closes subject to customary conditions; proceeds fully fund the acquisition's equity portion.
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Private placement announced to fund equity portion
Latest FundingMadison Air sells 90.1 million shares at $24.97 each, raising $2.25 billion; Gies camp buys $620 million. Shares rise 10%.
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Acquisition announced at $5.4B enterprise price
AnnouncementDeal valued at $5.0 billion net of tax savings; ebm-papst nearly doubles Madison Air's addressable market.
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Madison Air signs Sale and Purchase Agreement
AgreementMadison Air and ebm-papst owner families sign the transfer agreement for all outstanding shares and partnership interests.
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ebm-papst founded in Mulfingen
FoundingGerman company begins building fans and motors that become the backbone of airflow technology.
Historical Context
3 moments from history that rhyme with this story — and how they unfolded.
InBev's $52B Anheuser-Busch buyout (2008)
InBev borrowed heavily to buy Anheuser-Busch for about $52 billion, taking on enormous debt just as the financial crisis hit. The company then spent years selling assets and paying down the leverage.
The deal closed in November 2008, in the middle of the crisis, and forced aggressive asset sales.
The combined company deleveraged over several years, showing both the power and the burden of debt-financed consolidation.
Madison Air expects pro forma leverage of 3.7x at close and targets under 2.5x within two years. The InBev experience is a cautionary example of what happens when that deleveraging plan runs into a downturn.
Broadcom's blocked Qualcomm bid (2018)
Broadcom launched a hostile $117 billion bid for Qualcomm, the largest tech takeover ever attempted. Financing was not the issue — both sides had the resources. The deal died when the Committee on Foreign Investment in the United States (CFIUS) intervened and President Trump blocked it.
Broadcom withdrew the offer in March 2018 and relocated its headquarters from Singapore to the United States.
The episode cemented regulatory review as the decisive variable in large cross-border acquisitions, regardless of financing.
ebm-papst's acquisition clears its financing hurdle but still faces regulatory approvals. Broadcom shows that regulatory risk can kill a deal even when the money is fully arranged.
Danaher buys GE Biopharma (2019)
Danaher agreed to pay $21.4 billion for GE's biopharma business, one of the largest industrial acquisitions of its era. Danaher funded the deal largely with cash and debt, not a big equity raise, because its balance sheet had room.
The deal closed in about 13 months and Danaher absorbed the business into its life-sciences unit.
It became a template for large industrial rollups — except Danaher avoided the shareholder dilution Madison Air is now taking.
Madison Air chose the opposite path: a large equity issue rather than more debt. The contrast shows how balance-sheet capacity determines whether an acquirer dilutes shareholders or borrows.
