ESAB Targets $5 Billion TAM Growth Through Eddyfi Buyout

by | Feb 2, 2026 | General

ESAB Corporation (NYSE:ESAB) shares are trading lower on Monday after the company disclosed a deal to acquire Canada-based Eddyfi Technologies for $1.45 billion.

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Details

ESAB plans to fund the acquisition with cash on hand, debt and fully committed equity of $318 million.

The transaction is expected to close in mid-2026, pending customary closing conditions and regulatory approvals.

Eddyfi Projections

Eddyfi expects to generate about $270 million in revenue and $80 million in adjusted EBITDA in 2026, or $100 million including anticipated annualized synergies.

The company also anticipates achieving high-single-digit organic growth with gross margins above 65%.

By integrating the business and implementing the ESAB Business Excellence System (EBXai), the company anticipates unlocking $20 million in synergies along with additional operational and commercial benefits.

ESAB Guidance

For the fourth quarter 2025, ESAB expects revenue of $720 million–722 million (vs. consensus of $707.67 million) and core diluted EPS of $1.34–1.36 (vs. street view of $1.35).

Also, for FY25, the company sees revenue of $2.842 billion–$2.844 billion (vs. consensus of $2.72 billion) and core EPS of $5.25–5.27 (vs. street view of $5.29).

Moreover, for FY26, ESAB projects core revenue of $2.850 billion–$2.950 billion and core EPS of $5.70–5.90 (vs. consensus of $5.94).

Management Commentary

Shyam P. Kambeyanda, president and CEO of ESAB, added, “With the addition of Eddyfi, ESAB becomes the unrivaled provider of a full workflow solution spanning fabrication, inspection and monitoring. This new complete offering will contribute to ESAB’s position in the industry as a partner of choice for our global customers, where quality, productivity and uptime are non-negotiable.

“This acquisition further expands ESAB’s total addressable market by approximately $5 billion and accelerates our journey toward a portfolio that is faster growing, higher margin and less cyclical. The combination also strengthens our exposure to attractive, high-growth end markets, including Aerospace and Defense, Nuclear, Energy and Civil Infrastructure.”

As of Oct. 3, 2025, ESAB’s cash and cash equivalents stood at $218.2 million.

ESAB Price Action: ESAB shares are down 7.84% at $111.57 at publication on Monday.

Photo: Trygve Finkelsen via Shutterstock