Broadwind, Inc. (Nasdaq: BWEN) announced the completion of the acquisition of 100% of the issued and outstanding capital stock of MCM Acquisition Company, Inc. on October 30, 2026. The transaction was executed via a Stock Purchase Agreement with the shareholders of MCM and Summit Equity Group, L.L.C., acting as shareholder representative.
MCM is a precision manufacturer located in Northport, Alabama, with a 30-year history serving the electric utility and critical infrastructure sectors. The company operates a 37,000-square-foot facility and employs approximately 50 people. Under the terms of the agreement, the aggregate purchase price consists of a base price of $18.0 million, subject to customary post-closing adjustments, plus contingent consideration of up to an additional $7.0 million based on the achievement of performance targets during specified post-closing periods.
At the closing of the acquisition, Broadwind paid approximately $21.5 million in cash, which included $3.5 million deposited into escrow accounts to secure the contingent consideration obligations. The company financed the purchase through a combination of cash on hand and advances under its Credit Facility. Specifically, the company increased its outstanding term loan by approximately $1.8 million and utilized a revolving credit advance to fund the transaction.
In conjunction with the acquisition, Broadwind entered into a Joinder and Amendment No. 5 to its Credit Agreement. The amendment adds MCM as a borrower and the newly-formed subsidiary BWEN Clean Fuels, Inc., as a borrower. The amendment extends the maturity date of the Credit Agreement to January 1, 2028, and temporarily replaces the existing Fixed Charge Coverage Ratio covenant with a minimum Excess Availability covenant requiring Excess Availability of not less than 17.5% of the Revolving Loan Limit through March 31, 2027. Additionally, the amendment increases the Term Loan SOFR Rate Margin to 2.75% from 2.50%.
According to the company’s press release, on a trailing twelve-month basis through June 30, 2026, MCM generated total revenue of approximately $16.5 million and adjusted EBITDA of approximately $3.7 million, representing an adjusted EBITDA margin of 23%. The transaction price, excluding the contingent consideration, is valued at 4.8x trailing-twelve-month adjusted EBITDA. Broadwind stated that the acquisition is expected to be accretive to its diluted earnings per share upon closing.
