Graham Corporation Acquires FlackTek to Expand Engineered Solutions Portfolio
Graham Corporation, a global leader in mission-critical fluid, power, heat transfer, and vacuum technologies for the Defense, Energy & Process, and Space markets, announced the acquisition of FlackTek Manufacturing, LLC and FlackTek Sales, LLC, a pioneer in advanced mixing and material processing solutions.
Establishing Advanced Materials Processing as a Third Core Platform
The acquisition establishes advanced materials processing as Graham’s third core platform, complementing Graham Manufacturing’s vacuum and heat transfer expertise and Barber-Nichols’ turbomachinery capabilities, with FlackTek operating as a wholly owned subsidiary headquartered in Louisville, Colorado with a satellite location in Greenville, South Carolina and integrated into Graham’s financial, compliance and operational framework.
Transaction Structure and Financial Terms
Graham acquired 100 percent of FlackTek’s equity for a base purchase price of $35 million, paid 85 percent in cash and 15 percent in 75,818 shares of Graham common stock, with an additional earnout opportunity of up to $25 million in performance-based cash payments over four years beginning in fiscal 2027, tied to progressively increasing adjusted EBITDA targets, representing approximately 12 times FlackTek’s projected 2026 adjusted EBITDA.
Strategic Alignment With Graham’s Long-Term Vision
Matthew J. Malone, President and Chief Executive Officer of Graham Corporation, stated that FlackTek represents a highly strategic addition to Graham’s mission-critical portfolio, noting that the physics of advanced mixing align closely with Graham’s core competencies in vacuum, heat transfer and turbomachinery, enabling new opportunities to address complex materials processing challenges across defense, aerospace and industrial markets while impacting the full value chain from upstream extraction to final assembly.
Leadership Continuity and Growth Vision
Matt Gross, Chief Executive Officer of FlackTek, highlighted that joining Graham provides an ideal platform to accelerate growth while preserving FlackTek’s innovation-driven culture, confirming that he will continue to lead the FlackTek team and expand the reach and impact of its technology as part of Graham.
FlackTek Technology and Market Position
FlackTek is recognized as a leader in high-performance, bladeless centrifugal mixing, designing and manufacturing proprietary systems, accessories, consumables and material processing solutions from its Colorado headquarters, supported by a strong domestic manufacturing base and an established global distribution network.
Performance Advantages of Bladeless Mixing
FlackTek’s technology delivers highly repeatable precision mixing with faster cycle times, minimal entrained air, reduced batch downtime, improved consistency and lower heat transfer compared with traditional bladed methods, making it critical for applications where material integrity and performance consistency are essential.
Broad End-Market Applications
FlackTek’s systems are trusted by OEMs, R&D centers, defense laboratories and industrial manufacturers serving adhesives, sealants, functional coatings, composites, electronics and advanced materials, with solutions spanning laboratory-scale through large production platforms including the MEGA™ system for scalable processing from R&D to full production.
Revenue Profile and Installed Base Growth
With approximately $30 million in annualized revenue, FlackTek has built a growing installed base that generates recurring demand for consumables, accessories and services, enhancing revenue visibility, durability and long-term growth potential.
Strategic Rationale for the Acquisition
The addition of FlackTek significantly expands Graham’s ability to deliver integrated engineered solutions that combine rotating machinery, vacuum environments, thermal management and advanced materials processing, aligning naturally with Barber-Nichols’ turbomachinery and Graham Manufacturing’s vacuum and heat transfer systems.
Enhancing Mission-Critical Capabilities Across Industries
FlackTek adds a defensible, process-critical product portfolio serving defense, energetics, oil and gas, food, battery, aerospace, space, medical and industrial markets, strengthening Graham’s value proposition where precision, repeatability and reliability are mission-critical.
Margin Expansion and Innovation Opportunities
The acquisition is expected to enhance margins, deepen customer relationships and unlock cross-platform innovation opportunities while reinforcing Graham’s recurring revenue profile and intellectual property strength across its core end markets.
Financing and Credit Facility Expansion
The cash portion of the transaction was funded through a combination of cash on hand and borrowings under existing credit facilities, with Graham amending its credit agreement to increase its revolving credit facility from $50 million to $80 million to enhance financial flexibility and support future growth initiatives.
Pro Forma Financial Position
Following the transaction, Graham’s pro forma leverage ratio is approximately 1.2x, consistent with its disciplined capital allocation strategy, targeted leverage profile and long-term financial objectives while maintaining balance sheet strength and liquidity.
Leadership Integration and Ongoing Execution
Matt Gross will join Graham’s leadership team as Vice President and General Manager, continuing to lead the FlackTek business and ensuring continuity of operations and strategic execution.
Investor Communications and Outlook Update
Graham has published a supplemental acquisition presentation in the Events & Presentations section of its investor relations website and will provide further details and an updated fiscal 2026 outlook during its third-quarter earnings call scheduled for February 6, 2026.
About Graham Corporation
Graham Corporation is a global leader in mission-critical fluid, power, heat transfer and vacuum technologies serving Defense, Energy & Process and Space industries, supported by world-class engineering expertise in vacuum systems, cryogenic pumps and turbomachinery, a global service footprint and a reputation for quality, reliability and performance.
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