Fortive set to acquire EA Elektro-Automatik for $1.45bn

Fortive Corporation, in a strategic move, has confirmed its agreement to acquire EA Elektro-Automatik Holding GmbH (EA), a foremost supplier in high-power electronic test solutions. The deal, encompassing energy storage, mobility, hydrogen, and renewable energy applications, is priced at $1.45 billion in cash, excluding tax benefits of $215 million from Bregal Unternehmerkapital. The closure of this acquisition, pending customary conditions and regulatory green lights, is anticipated in the early first quarter of 2024.

Fortive’s Vision and Financing:

James A. Lico, Fortive’s President and Chief Executive Officer, shared his perspective, “We are pleased to announce our agreement to acquire EA Elektro-Automatik… leveraging Tektronix‘s global franchise and the power of the Fortive Business System to create unparalleled value for customers and shareholders.”

In terms of financing the deal, Fortive has plans to utilize its available cash in tandem with debt financing. The acquisition’s financial projections hint at an accretive impact on adjusted gross and operating margins. Furthermore, it’s expected to be neutral to slightly accretive to the adjusted diluted net earnings per share in the fiscal year 2024.

Advisory Role in the Acquisition:

In ensuring smooth navigation through the acquisition process, Fortive availed financial advisory services from Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC. Additionally, Freshfields Bruckhaus Deringer played a pivotal role by providing the necessary legal counsel to Fortive.