Subsequent Events

12 Months Ended

Aug. 31, 2026

Subsequent Events [Abstract]

Subsequent Events

Note 18.    Subsequent Events

Refinancing of Senior Credit Facility

On October 16, 2026, the Company refinanced its credit facility resulting in a new $850 million senior credit facility, comprised of a $550 million revolving line of credit and a $300 million term loan, which will mature in October 2031. The Company has the option to request up to $425 million of additional revolving commitments and/or term loans under the new facility, subject to customary conditions, including the commitment of the participating lenders. The new facility provides for interest rate margins above adjusted term SOFR ranging from 1.125% to 1.875% per annum depending on the Company’s net leverage ratio. Borrowings under the new facility initially bear interest at adjusted term SOFR plus 1.125% per annum. In addition, the new facility contains financial covenants requiring the Company to not permit (i) the net leverage ratio, determined as of the end of each of its fiscal quarters, to exceed 3.75 to 1.00 (or, at the Company’s election and subject to certain conditions, 4.25 to 1.00 for the testing period during which certain material acquisitions occur and the next succeeding four testing periods) or (ii) the interest coverage ratio, determined as of the end of each of its fiscal quarters, to be less than 3.00 to 1.00. Borrowings under the new facility are secured by substantially all personal property assets of the Company and its domestic subsidiary guarantors (other than certain specified excluded assets) and certain of the equity interests of certain subsidiaries of the Company. Initial borrowings under the new credit facility were applied to repay all outstanding borrowings under the refinanced credit facility which had been scheduled to mature in September 2027.

Acquisition of SFE Group

On October 28, 2026, the Company acquired Specialized Fabrication Equipment Group LLC (“SFE Group”) in a merger transaction in which the aggregate amount paid by the Company with respect to the equity interests in SFE Group was approximately $452 million in cash, plus the issuance by the Company of approximately $20 million in restricted stock unit awards to key personnel of SFE Group, in lieu of cash payment of transaction bonuses owed by SFE Group to such personnel upon completion of the merger transaction. The cash portion of the acquisition consideration is subject to customary adjustments for the level of cash, net working capital, transaction related expenses (including with respect to the transaction bonuses), indebtedness and other similar items existing at SFE Group and its subsidiaries as of the closing date of the transaction. The Company funded the payment of the cash consideration at closing from cash on hand, its recently refinanced $300 million term loan and borrowings of $312 million under its revolving credit facility.

SFE Group is a global industrial equipment company focused on pipe and tube fabrication, welding, machining, and maintenance tools and serves industries such as aerospace & defense, food & beverage, bio-pharma, oil & gas, manufacturing, utilities, power generation, semiconductor, maritime, mining, transportation, data centers, and hospitals.

As the transaction had not closed as of August 31, 2026, the Company has not recorded the acquisition or performed an allocation of the purchase consideration to the net assets acquired at closing. The Company expects to finalize the purchase price allocation for the acquisition within the allowable measurement period.

Adoption of Inducement Award Plan

On October 28, 2026, 2026, the Company’s Board of Directors adopted the Enerpac Tool Group Inducement Award Plan (the “Inducement Plan”), which provides for the issuance of up to 621,622 shares of the Company’s Class A common stock pursuant to equity awards to be granted solely to individuals who are expected to become officers and other employees and to whom the Company may grant equity awards without shareholder approval pursuant to the New York Stock Exchange’s Listing Rule 303A.08, or any successor rule relating to inducement awards. The Inducement Plan was adopted to facilitate awards of restricted stock units and other long-term equity awards to personnel of SFE Group in connection with the acquisition.