Graham Corporation Acquires FlackTek for $35M, Expanding Materials Processing Platform
Event summary
- Graham Corporation acquired FlackTek for $35M, with an additional $25M in potential earnouts based on EBITDA targets.
- FlackTek will operate as a wholly-owned subsidiary, maintaining its headquarters in Louisville, Colorado.
- The acquisition adds advanced materials processing as Graham's third core platform alongside vacuum & heat transfer and turbomachinery.
- Graham increased its revolving credit facility from $50M to $80M to support the acquisition and future growth initiatives.
- FlackTek's CEO, Matt Gross, will join Graham's leadership team as Vice President and General Manager.
The big picture
Graham Corporation's acquisition of FlackTek strengthens its position in mission-critical engineered products, particularly in advanced materials processing. This move aligns with broader industry trends towards integrated solutions that span rotating machinery, vacuum environments, thermal management, and materials processing. The deal also enhances Graham's financial flexibility, with an increased revolving credit facility to support future growth initiatives.
What we're watching
- Integration Challenges
- How Graham will integrate FlackTek's operations and technology into its existing platforms.
- Earnout Performance
- Whether FlackTek can meet the progressively increasing adjusted EBITDA targets to unlock the $25M earnout.
- Cross-Platform Innovation
- The pace at which Graham can leverage FlackTek's technology to drive innovation across its defense, energy & process, and space end markets.
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