Madison Air Shares Surge 12.1% After $2.25 Billion Raised for ebm-papst Acquisition
Shares in Madison Air Solutions Corporation rose 12.09% on Tuesday following the company’s resolution of a key financing hurdle in its intended purchase of ebm-papst. The stock ended the session at $27.99.
NYSE: MAIR · acquisition financing
Funding certainty beats dilution
Market data through August 25, 2026, 16:00 EDT
U.S. cash session closed
Close
$27.99
+$3.02 · +12.09%
Placement
$2.25B
90.1M shares at $24.97
Deal price
$5.0B
effective enterprise value
Pro forma leverage
~3.7×
target <2.5× in two years
Stock repricing
Tuesday’s close was 12.1% above the private-placement price.
Acquisition funding mix
Equity placement · $2.25BDebt and available cash · ~$2.8BThe placement removes the equity-funding overhang. Debt service and synergy delivery become the next valuation tests.
Operating base
| Measure | Q2 / latest | Signal |
|---|---|---|
| Net sales | $991.3M | +21% |
| Adjusted EBITDA | $265.8M | +18% |
| Adj. EBITDA margin | 26.8% | -70 bp |
| Backlog | $2.87B | +133% |
| Free cash flow | $89.6M | 9.0% of sales |
Dilution math
| New shares | 90.1M |
| Estimated pre-deal base | ~490M |
| Increase versus base | ~18.4% |
| New shares / enlarged total | ~15.5% |
| Insider-affiliated commitments | $620M |
Share-base figures are estimates derived from the April IPO valuation because Madison Air has multiple share classes.
Management targets
| Target | Value |
|---|---|
| 2026 sales | $3.825B–$3.925B |
| 2026 adjusted EBITDA | $1.020B–$1.065B |
| Annual cost synergies | At least $160M |
| Post-close net leverage | ~3.7× |
| Two-year leverage goal | <2.5× |
Analyst reference points
| Firm | View | Target |
|---|---|---|
| Stifel | Buy | $41 |
| Barclays | Overweight | $45 |
| RBC | Outperform | $48 |
| Baird | Outperform | $48 |
What moves MAIR next
Positive: placement closes near September 1; acquisition approvals stay on schedule; backlog converts without margin erosion. Watch: debt pricing, interest expense and public-float expansion. Risk: slower synergies or regulatory delay would weaken the planned deleveraging path.
Sources: Madison Air August 25 placement release, August 17 acquisition announcement and July 30 second-quarter results; Reuters IPO and acquisition reporting; Yahoo Finance closing data. Figures labeled estimates are calculated from disclosed inputs.
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