INNOVATE Corp. announced the completion of the sale of its subsidiary, DBM Global, Inc., to IES Holdings, Inc., on October 5, 2026. The transaction, originally announced on August 10, 2026, involved the sale of 100% of DBMG’s outstanding common stock. Under the terms of the agreement, IES acquired approximately 91.21% of the shares previously held by INNOVATE and the remaining 8.79% held by other stockholders.
The consideration paid to INNOVATE and its holding entity, DBM Global Intermediate Holdco Inc., consisted of 430,974 shares of IES common stock and approximately $378 million in cash. The stock consideration was adjusted for IES’s two-for-one stock split effected on August 21, 2026. In addition to the base purchase price, INNOVATE received a $35 million cash payment at closing to cover costs related to a Section 338 tax election. Including this additional payment, INNOVATE received total cash of approximately $413 million at closing.
The sale of the stock consideration is subject to a 60-day lock-up period following the closing of the transaction, subject to the terms of the agreement. The cash portion of the proceeds is subject to finalization following the delivery of a post-closing statement and any necessary dispute resolution through an independent accounting firm.
INNOVATE plans to use the net proceeds from the transaction to reduce its outstanding indebtedness. Specifically, the company intends to apply the proceeds to redeem its 10.500% Senior Secured Notes due 2027 and its 9.500% Convertible Senior Secured Notes due 2027. The company has issued a notice of redemption for $325 million of the Senior Secured Notes, which will be redeemed on October 15, 2026, for 100% of the principal amount plus accrued interest. The remaining Senior Secured Notes are scheduled for redemption within 15 days after the expiration of a lock-up period related to the sale of the stock consideration.
As part of the transaction, INNOVATE also repaid its revolving credit agreement with MSD PCOF Partners IX, LLC, in an aggregate amount of approximately $20.7 million. This repayment included all accrued and unpaid interest and fees, and terminated the credit facility, which had a maximum commitment of $20.0 million and a maturity date of December 31, 2026.
