ESAB Corporation, a global leader in welding technology, has announced a definitive agreement to acquire Eddyfi Technologies for a staggering $1.45 billion USD. This landmark transaction not only marks a significant expansion for Maryland-based ESAB into the non-destructive testing market but also represents a major milestone for Québec's technology sector. The deal ensures the Québec City-based NDT specialist will continue its operations and growth from its Canadian headquarters.
A Landmark Transaction for Québec Tech
Valued at approximately $2 billion CAD, the acquisition stands as one of the province's most substantial tech deals in recent years, with a valuation slightly exceeding the market capitalization of Montréal's Lightspeed Commerce. As part of the agreement, ESAB has made firm commitments to maintain Eddyfi’s entire workforce and its head office in Québec City. This assurance preserves the company's local identity and legacy while providing a stable path for future expansion.
Strategic Expansion for ESAB
For ESAB, the acquisition is a pivotal strategic move that diversifies its portfolio beyond traditional fabrication into the high-growth inspection and integrity management sectors. Shyam P. Kambeyanda, President and CEO of ESAB, stated the deal accelerates the company's journey toward a faster-growing, higher-margin, and less cyclical business model. The move significantly broadens ESAB's total addressable market by an estimated $5 billion.
The financial benefits are expected to be substantial, with Eddyfi projected to generate approximately $270 million in revenue and $80 million in adjusted EBITDA for ESAB in 2026. To facilitate the purchase, ESAB will utilize a combination of cash on hand, debt, and a fully committed equity financing of $318 million. The transaction is anticipated to close in the second quarter of the current year, pending regulatory approvals.
Eddyfi's Journey and Technological Prowess
Founded in 2009, Eddyfi has established itself as a global leader in non-destructive testing (NDT) solutions, which allow for the inspection of critical infrastructure without causing damage. Its advanced technologies, including ultrasonic testing devices and robotic inspection drones, are crucial for maintaining the integrity of assets in demanding sectors. These tools are used by major clients in aerospace, energy, mining, and transportation.
With a workforce of over 1,000 employees, Eddyfi serves a prestigious client base, including Shell and General Electric, across more than 110 countries. The company's growth has been supported by prominent investors like La Caisse and Novacap. The sale follows a recent restructuring where its parent company, Previan, was split, with Eddyfi's leadership finding the value of ESAB's offer too compelling to pass up.
A Future of Integrated Growth
Following the acquisition, Eddyfi is set to continue operating with its current leadership teams, product roadmaps, and commercial commitments, ensuring a seamless transition for employees and customers. Martin Thériault, Eddyfi's founder and chairman, expressed that ESAB provides the necessary scale and long-term commitment to support the company's people and honor its legacy. This new chapter is defined by renewed momentum and continued expansion from its Québec City base.
The acquisition of Eddyfi by ESAB represents a powerful strategic alignment, creating an integrated industrial technology leader that spans from fabrication to inspection and maintenance. This deal not only provides Eddyfi with the resources for its next phase of evolution but also positions ESAB for significant growth in high-value markets. Ultimately, the transaction underscores the strength of Canada's tech ecosystem while promising a future of innovation and stability for both companies.