Mayville to Expand Its Footprint With the Accu-Fab Acquisition

Core Viewpoint - Mayville Engineering Company, Inc. (MEC) has announced a definitive agreement to acquire Accu-Fab, LLC for a total value of $140.5 million, expected to close in Q3 2025, which is anticipated to enhance MEC's business growth and operational efficiency [1][3][4]. Company Overview - Accu-Fab is a vertically integrated contract manufacturer providing design, engineering, sheet metal fabrication, and specialized finishing services to large OEMs, operating in approximately 200,000 square feet of manufacturing space across Raleigh, NC, and Wheeling, IL [2]. Financial Impact - Accu-Fab reported total net sales of approximately $61 million and adjusted EBITDA of about $14 million for 2024, with an adjusted EBITDA margin exceeding 23%, indicating a positive contribution to MEC's financials post-acquisition [3]. - MEC expects the acquisition to contribute $28-$32 million to net sales and $6-$8 million to adjusted EBITDA in 2025, along with an anticipated $1 million in annual cost synergies by 2026 through the implementation of its MBX framework [4]. Strategic Benefits - The acquisition is expected to strengthen MEC's market presence and accelerate entry into new markets, leveraging Accu-Fab's customer relationships and value-added services to drive revenue and cost synergies [5]. - MEC's focus on operational improvements and cost discipline, alongside strategic pricing and capital efficiency initiatives, positions the company well amid macroeconomic uncertainties [7]. Stock Performance - Following the acquisition announcement, MEC's stock rose by 5.2% in a single trading day, and the stock has increased by 26.7% over the past month, outperforming the Zacks Engineering - R and D Services industry's growth of 13.3% [1][5].