Milwaukee-Based Enerpac Strikes $472 Million Deal
Company says buying Houston firm could expand market for its products by $1 billion.
Paul Sternlieb in May 2025. Photo by Jeramey Jannene.
Enerpac Tool Group Corp. is preparing to make a major acquisition just over a year since the company relocated Downtown.
The industrial tool manufacturer announced Tuesday it has agreed to acquire Houston-based Specialized Fabrication Equipment Group LLC, commonly known as SFE Group, for approximately $472 million in cash.
The deal would substantially expand Enerpac’s product portfolio beyond the high-pressure hydraulic tools and heavy-lifting equipment for which the Milwaukee company is best known.
SFE manufactures specialized equipment used for pipe fabrication, welding, portable machining and material handling. Its products are sold under 12 brands, including Climax, B&B Sumner, Sumner Material Lifts, Mathey Dearman and H&S Tool.
The Houston-based company has approximately 350 employees, four production facilities and seven rental depots around the world. It generated approximately $170 million in sales and $44 million in adjusted earnings before interest, taxes, depreciation and amortization during the most recent 12-month period.
Enerpac reported $616.9 million in revenue during its most recently completed fiscal year, which ended in August 2025.
Enerpac president and CEO Paul Sternlieb said SFE fits the company’s strategy of focusing on specialized industrial tools and equipment.
“SFE Group is exactly the type of high-quality, growing business that we have been seeking,” said Sternlieb in a statement. He described the company as a “premium brand platform” with strong profit margins and opportunities for continued growth.
Enerpac said the acquisition would increase the potential market for its products by approximately $1 billion.
SFE’s equipment is used in industries including aerospace and defense, oil and gas, power generation, manufacturing, mining, transportation, semiconductor production, hospitals and data centers.
The companies expect the transaction to close during the first quarter of Enerpac’s 2027 fiscal year, subject to regulatory approval and other closing conditions.
Enerpac plans to fund the acquisition with cash and borrowing.
The purchase price is equal to approximately 10.6 times SFE’s adjusted earnings over the most recent 12 months. Enerpac, in a press release, said it expects cost savings and other benefits from combining the businesses to reduce the effective multiple to 9.5 times earnings within three years.
SFE CEO Vinay Varma will remain with the company and operate the business as president of SFE Group.
“Joining Enerpac Tool Group marks an exciting chapter for our team,” said Varma. “It will give us the resources, operational rigor and platform to accelerate investments in innovation while continuing to deliver top-tier solutions for our customers and partners.”
The acquisition comes as Enerpac works to establish a more visible corporate presence in Milwaukee.
The publicly traded company relocated its headquarters from Menomonee Falls to Downtown Milwaukee in March 2025, bringing approximately 130 employees to the former Gimbels department store complex at 648 N. Plankinton Ave.
As part of the relocation, the ASQ Center was renamed the Enerpac Center. The company leases the building’s entire 56,000-square-foot fourth floor, where it operates its executive offices, administrative functions and a 3,000-square-foot research and development laboratory.
The lab includes 3D printers, metal fabrication equipment and a CNC machine that allows engineers to produce and test prototypes without relying on outside vendors.
At a May 2025 ribbon-cutting ceremony, Sternlieb said the downtown move was intended to support the company’s growth, help it recruit employees and strengthen its presence in the Milwaukee community.
Enerpac has approximately 2,100 employees worldwide, including about 500 in Wisconsin. In addition to its downtown headquarters, the company operates manufacturing facilities in the state.
The company traces its roots to American Grinder Manufacturing Corp., which was established in Milwaukee in 1910. It later became known as Applied Power and then Actuant Corp. before adopting the Enerpac Tool Group name in 2019 as it sold other divisions and narrowed its focus to industrial tools.
Enerpac’s hydraulic equipment is capable of lifting and positioning exceptionally heavy objects, including bridges, train cars and stadium roofs. Its products have been used to operate the retractable roof at American Family Field.
The SFE acquisition would further shift the company toward a broader portfolio of specialized tools used for complex industrial construction, fabrication and maintenance work.
Enerpac’s shares trade on the New York Stock Exchange under the symbol EPAC. At the close of trading Friday it had a market cap of $1.85 billion.
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