IES Pays About $691 Million In Cash And Stock To Close DBM Global Deal, Its Largest
The 8-K says IES drew $525 million on a credit line expanded to $700 million to fund the cash portion of the purchase.
IES Holdings closed its purchase of structural steel fabricator DBM Global on Monday for total consideration of about $691 million, according to an 8-K filed Tuesday. The deal creates a new Structural line of business for IES.
What the 8-K says
The price breaks into roughly $545 million in cash and 430,974 IES shares valued at about $146 million. The share count is adjusted for IES's two-for-one stock split on August 21, 2026, and the shares are valued at the October 2 closing price.
The cash portion includes a $35 million payment to INNOVATE for the estimated cost of a joint tax election under Section 338(h)(10) of the Internal Revenue Code. The price remains subject to customary working capital and other post-closing adjustments.
IES paid the cash from cash on hand and $525 million of borrowings. On Monday it signed an amendment to its credit agreement that raised borrowing capacity to $700 million: a $200 million term loan and a $500 million revolver. The acquired subsidiaries were added as guarantors.
IES bought 100% of DBM Global's stock, according to the press release, including the roughly 91.2% held by INNOVATE. DBM Global had revenue of about $1.5 billion for the twelve months ended June 30, 2026.
What it changes
DBM Global will run as IES's Structural segment, next to Communications, Residential, Infrastructure Solutions and Commercial & Industrial. CEO Matt Simmes said about 4,000 DBM Global employees join IES, and he named data center, industrial and infrastructure customers as the target markets.
Executive Chairman Jeff Gendell called it IES's "largest acquisition to date" and said the company chose a mix of cash, borrowings and equity to protect its balance sheet. He said cash flow from both companies should allow IES to repay the acquisition borrowings rapidly.
The transaction agreement is dated August 7, 2026. On the seller side, INNOVATE interim CEO Paul Voigt said in a separate release that the proceeds will substantially reduce INNOVATE's debt as it focuses on its remaining businesses.
IES shares closed at $341.83 on Tuesday, up 0.65%. The filing was accepted at 4:00 p.m. ET, so that move came before the disclosure.
What to watch
The 8-K says DBM Global's financial statements and pro forma financial information will follow by amendment, no later than 71 days after the 8-K's due date. That filing will give the first full look at the unit's earnings.
Until that amendment arrives, the $1.5 billion revenue figure is the only measure of DBM Global's size in IES's disclosures.
Sources
- 8-K Filing — IES Holdings, Inc. (IESC) — SEC EDGAR
- Exhibit ex99-1.htm — IES Holdings, Inc. 8-K exhibit — SEC EDGAR
- IES Holdings Completes Acquisition of DBM Global — globenewswire.com
- INNOVATE Completes Sale of DBM Global to IES Holdings — globenewswire.com
