Enerpac's cash nearly matched its debt. Then came SFE.

Enerpac Tool Group completed its purchase of SFE Group on October 28, adding equipment used to fabricate, weld and machine pipes. The deal broadens the business beyond its established hydraulic tools and lifting systems, while giving its cash a much bigger task.

At August 31, Enerpac had $174.7 million of cash against $182.3 million of debt. The $7.6 million difference, called net debt, left it with a substantial cushion before the acquisition.

That annual balance sheet predates the deal. Enerpac paid about $452 million in cash for SFE, alongside $20 million of share awards replacing certain transaction bonuses. Funding combined existing cash, a refinanced $300 million term loan and $312 million drawn from its revolving credit line. Part of the new borrowing refinanced existing debt.

Enerpac estimated that net debt at closing would be about 2.3 times a year of adjusted EBITDA, a profit measure that strips out financing costs, tax, asset-related accounting charges and selected other costs. The calculation includes SFE's estimated contribution.

More sales, less profit from each dollar

The business being expanded has good sales momentum. Revenue rose 11% to $185.7 million in the fourth quarter ended August 31, 2026. Excluding currency movements and acquisition effects, growth was 10%.

Profit did not keep pace. Quarterly net income fell to $24.4 million from $28.1 million. Enerpac pointed to the mix of business sold, higher incentive compensation and investment in future growth. Even after its selected adjustments, the EBITDA margin fell to 22.6% from 26.5%.

Full-year sales exceeded the reduced target Enerpac set in July. Annual adjusted EBITDA landed within July's range, but below the original range announced a year earlier. The strong sales finish did not restore the original profit target.

Cash generation provided a firmer foundation for the purchase. Annual operating cash flow rose to $130.2 million from $111.3 million. After capital spending, free cash flow reached $119.6 million, helped by lower spending on fixed assets as well as more cash from operations.

The next growth figure includes a new business

SFE brings meaningful scale: it generated about $170 million of sales in the 12 months ended March 31, 2026. Enerpac expects roughly 10 months of SFE in its new fiscal year, which runs through August 2027.

The resulting revenue forecast is $825 million to $845 million. That jump includes the acquired business; Enerpac's separate forecast for growth excluding acquisitions and currency changes is 4% to 6%.

Management expects $4 million to $6 million in annual savings and other combined benefits by the third year, alongside $10 million to $14 million of integration costs.

The Enerpac company profile compares the earlier targets with actual results and tracks the acquisition, financing and longer financial record.