Acquisition is a 138,000 square foot finishing facility in Thomson, Georgia. The transaction closed on October 1, 2026. The Company expects to invest in phases a total of approximately $25 million to $30 million in the location, which includes the purchase price, facility improvements and production equipment through 2028. The planned investment will support growing demand in the Datacenter & Critical Power end market and, when fully deployed, is expected to add approximately $50 million of annual revenue capacity by 2028.

STRATEGIC RATIONALE

  • Expands capacity to serve accelerating demand in the high-value Datacenter & Critical Power end market. Consistent with MEC's stated strategy of investing in higher-value, higher-growth end markets, customer demand within the Datacenter & Critical Power end market continues to outpace the Company's available capacity. MEC's qualified opportunity pipeline in this end market exceeds $125 million, and the Company has secured approximately $90 million in new project awards during the first half of 2026. The Thomson facility adds to the already existing platform through which MEC will increase dedicated capacity to convert this pipeline into profitable growth.
  • Positions capacity in close proximity to the Company's Datacenter & Critical Power customers. The facility is located near Augusta, Georgia, within the Southeastern corridor where several of MEC's current and potential Datacenter & Critical Power customers are concentrated, extending the regional footprint MEC established through its 2025 acquisition of Accu-Fab LLC. Regional proximity supports shorter lead times, lower freight costs and closer collaboration with customers as their programs scale, and adds Georgia as MEC's tenth state of operation.
  • Provides a capital-efficient and accelerated path to new capacity. The acquisition secures an existing 138,000 square foot facility with operational e-coating and powder coating lines, on-site wastewater treatment and environmental permitting in place, together with an experienced workforce that MEC intends to retain in full. Acquiring and converting an established industrial site allows MEC to bring capacity online on a faster timeline and at lower cost than a greenfield alternative, while MEC's investment expands the site's finishing operations into a full fabrication and finishing facility.
  • Investment held to MEC's disciplined return thresholds. MEC expects to invest a total of $25 million to $30 million in the location, inclusive of the purchase price, facility improvements and production equipment, phased across 2027 and 2028. When fully deployed, the investment is expected to support approximately $50 million of annual revenue capacity, increasing MEC's total revenue capacity beyond the approximately $850 million previously disclosed. Consistent with the framework MEC applies across its organic growth investments, the project is expected to meet the Company's return threshold of an internal rate of return of at least 15%. The Company may make additional investments in fabrication capacity at the site over time based on regional demand.
  • Funded from existing liquidity with no expected material impact to 2026 results. The investment is funded with available liquidity due in part to our previous equity financing transaction. The acquisition is not expected to have a material impact on the Company's 2026 net sales, Adjusted EBITDA or Free Cash Flow. Revenue and earnings contribution is expected to begin in 2027 and build as fabrication capabilities are commissioned and customer programs ramp.