Mayville Engineering Company (NYSE: MEC), a leading provider of design and manufacturing solutions, announced Monday it has reached a definitive agreement to acquire Accu-Fab, LLC, a contract metal fabricator, from Tide Rock Holdings for $140.5 million.
The deal, expected to close in the third quarter of 2025, is subject to customary closing conditions. Accu-Fab specializes in high-precision metal fabrication for industries including power infrastructure, data centers and renewable energy. The company operates facilities in Raleigh, North Carolina, and Wheeling, Illinois, with nearly 200,000 square feet of manufacturing space.
“Accu-Fab strengthens our position in high-growth markets and will be immediately beneficial to our financial performance,” said Jag Reddy, MEC’s president and CEO. The acquisition is projected to boost MEC’s adjusted earnings and margins while expanding its commercial reach.
In 2024, Accu-Fab reported $61 million in net sales and $14 million in adjusted EBITDA, with margins exceeding 23%. MEC plans to fund the purchase through cash and existing credit facilities, with support from Wells Fargo and JPMorgan Chase. Post-acquisition, MEC expects its net debt-to-EBITDA ratio to be around 3.0x, with plans to reduce leverage within 18 months.
The deal aligns with MEC’s strategy to diversify into growing sectors. Accu-Fab’s expertise in power infrastructure and data centers complements MEC’s existing operations, offering potential revenue synergies of $3 million to $5 million annually. Cost savings of about $1 million are anticipated by 2026 through operational improvements.
J.P. Morgan Securities advised MEC on the transaction, with Foley & Lardner providing legal counsel.