ESAB's $1.45B Eddyfi Bet: Forging an Industrial Tech Powerhouse

NORTH BETHESDA, MD – February 02, 2026 – In a transformative move poised to reshape the industrial landscape, ESAB Corporation (NYSE: ESAB) today announced a definitive agreement to acquire Eddyfi Technologies for $1.45 billion. The deal brings together ESAB, a century-old titan in fabrication and welding, with Eddyfi, a modern leader in advanced non-destructive testing (NDT), signaling a major strategic pivot toward integrated, high-tech industrial solutions.

The acquisition, funded by a mix of cash, debt, and $318 million in equity, is designed to create what ESAB leadership calls an “unrivaled provider of a full workflow solution.” The vision is to offer customers a seamless experience that spans the entire lifecycle of critical assets—from initial fabrication and construction to long-term inspection, monitoring, and maintenance.

“This acquisition is a pivotal step that strengthens ESAB and sets the course for our next phase of growth,” said Shyam P. Kambeyanda, President and CEO of ESAB Corporation, in the official announcement. He emphasized that the combination will make ESAB a “partner of choice for our global customers, where quality, productivity and uptime are non-negotiable.”

A Strategic Pivot to High-Tech Integration

This acquisition is far more than a simple expansion; it represents a fundamental shift in ESAB's corporate strategy. By integrating Eddyfi's high-margin, technology-driven portfolio, ESAB is actively moving to diversify its revenue streams and reduce its exposure to more cyclical aspects of the industrial market. The company projects the deal will expand its total addressable market by approximately $5 billion.

Eddyfi, based in Québec, Canada, is a powerhouse in the NDT market, providing cutting-edge instrumentation, robotics, and software to assess the structural integrity of critical infrastructure. The company is expected to generate around $270 million in revenue and $80 million in adjusted EBITDA in 2026, with ESAB anticipating an additional $20 million in synergies through the deployment of its ESAB Business Excellence System (EBXai), bringing potential EBITDA to $100 million.

This vertical integration of fabrication and inspection is a direct response to growing industry demand for holistic asset management. Instead of dealing with separate vendors for construction and integrity assessment, customers in critical sectors will have access to a single-source provider, promising greater efficiency and accountability throughout an asset's life.

Beyond Welding: Targeting High-Growth Sectors

The true strategic value of the acquisition lies in the access it grants ESAB to a portfolio of faster-growing, higher-margin end markets. Eddyfi is deeply embedded in sectors where failure is not an option, including aerospace and defense, nuclear power, energy, and civil infrastructure. The global NDT market is on a steep growth trajectory, with market estimates projecting a compound annual growth rate (CAGR) of between 6.7% and 9.2% over the next decade, potentially reaching over $45 billion by 2033.

In aerospace, Eddyfi's advanced sensors and automated robotics are crucial for inspecting complex composite materials and ensuring the airworthiness of commercial and military aircraft. The nuclear industry relies on its technology for the rigorous, mandated inspections of reactors and containment vessels, a market set to grow as nations look to extend the life of existing plants and build new ones. In the broader energy sector, from oil and gas pipelines to the towering turbines of wind farms, Eddyfi's solutions provide the data needed to predict failures, protect the environment, and ensure operational continuity.

The Financials and Market Reaction

The $1.45 billion price tag made waves among investors, with ESAB's stock dipping approximately 8% on the day of the announcement. This initial reaction reflected some market apprehension regarding the deal's significant size, the complexities of integration, and the dilutive effect of the equity financing. ESAB’s preliminary 2026 outlook, which came in slightly below consensus before factoring in the acquisition, also contributed to the pressure.

However, many industry analysts have taken a longer-term view, with firms like Oppenheimer and Stifel maintaining positive ratings. They see the move as a strategically sound investment that diversifies ESAB’s revenue base and aligns it with durable, high-growth trends in technology and services. The company has stated it expects its net leverage ratio to fall below 3.0x by the end of the year following the transaction, signaling a commitment to maintaining a healthy balance sheet.

A Quebec Success Story's Next Chapter

For Eddyfi Technologies, the acquisition marks the next evolutionary step for a Canadian tech success story. Founded by Chairman Martin Thériault, the company grew into a global NDT leader from its headquarters in Quebec City. A key component of the deal is ESAB’s firm commitment to maintain Eddyfi's workforce and head office in Quebec, preserving its identity and innovation hub.

“Joining forces with ESAB marks an exciting new chapter for our team,” Thériault stated, highlighting that ESAB brings the “scale, resources and long-term commitment needed to support our people, strengthen our impact with customers and honour the legacy we have built.”

ESAB plans to have Eddyfi operate with its current leadership teams, ensuring continuity for customers and employees. This approach suggests ESAB values Eddyfi not just for its technology but for its talent and culture, aiming to foster growth rather than absorb a competitor. The transaction is expected to close in mid-2026, subject to customary closing conditions and the necessary regulatory approvals from authorities in the United States and Canada, which will be the final hurdles before this industrial transformation can truly begin.