Enerpac Tool Group Corp. (EPAC) shares surged 6.12% in after-hours trading on Tuesday.
The sharp move followed the company's announcement that it has entered into a definitive agreement to acquire Specialized Fabrication Equipment Group LLC (SFE Group) for approximately $472 million in cash. The acquisition is expected to expand Enerpac's exposure to higher-growth geographies and end markets, add a portfolio of 12 premium industrial tool brands, and increase its total addressable market by approximately $1 billion.
Management stated the deal is expected to be accretive to fiscal 2027 adjusted earnings per share. The market reacted positively to the strategic move, which aligns with Enerpac's pure-play industrial tools strategy and is seen as a driver for long-term shareholder value.