Graham (NYSE:GHM) is diversifying its industrial footprint with the acquisition of FlackTek, a specialist in advanced mixing and material processing solutions, in a deal valued at $35 million plus performance-based incentives.
The acquisition marks a strategic evolution for the Batavia, New York-based Graham, which has traditionally focused on vacuum and heat transfer equipment through its Graham Manufacturing arm and turbomachinery via Barber-Nichols.
FlackTek will now serve as the company's third core platform, bringing specialized technology used across the defense, aerospace, and industrial value chains.
Under the terms of the agreement, Graham paid $35 million for 100% of FlackTek’s equity, comprised of 85% cash and 15% common stock.
The deal includes a significant "earn-out" provision, with FlackTek eligible for an additional $25 million in cash over the next four years if it meets progressively higher EBITDA targets starting in fiscal year 2027.
The initial purchase price represents a multiple of approximately 12 times FlackTek’s projected 2026 adjusted EBITDA.
FlackTek, which will remain headquartered in Louisville, Colorado, provides Graham with a high-margin, technology-led business that complements its existing mission-critical product lines.
Matt Gross, CEO of FlackTek, will continue to lead the team as a wholly owned subsidiary of Graham.