Graham Corporation announced a $35 million acquisition of FlackTek Manufacturing, LLC and FlackTek Sales, LLC on January 26 2026. The transaction is structured with 85 % paid in cash and 15 % in Graham stock, comprising 75,818 shares, and includes a potential earn‑out of up to $25 million over four years based on adjusted EBITDA targets beginning in fiscal year 2027.
FlackTek brings a portfolio of bladeless centrifugal mixing systems that use dual‑asymmetric centrifugal principles, generating faster cycle times, lower heat transfer, and minimal entrained air. The company’s annualized revenue of roughly $30 million is driven by high‑growth markets such as defense, aerospace, battery, medical, semiconductor, and personal‑care manufacturing. Matt Gross, FlackTek’s CEO, will join Graham as vice president and general manager of the new advanced‑mixing division, ensuring continuity of leadership and customer relationships.
Strategically, the acquisition adds a third core pillar—advanced mixing—to Graham’s existing vacuum, heat‑transfer, and turbomachinery businesses. The move expands the company’s product offering into high‑performance mixing for advanced materials, adhesives, composites, and aerospace applications, creating cross‑sell opportunities across its defense, energy, and space segments. The deal is expected to enhance revenue visibility, deepen customer relationships, and support a broader shift toward higher‑margin defense and space markets, while the increased $80 million credit facility provides financial flexibility for future growth initiatives.
Graham’s most recent quarterly results, released November 7 2025, showed revenue of $66 million—up 23 % year‑over‑year—and an adjusted EPS of $0.31, slightly below the consensus estimate of $0.33. The revenue beat was driven by strong demand in the company’s core vacuum and heat‑transfer segments, offsetting modest headwinds in legacy turbomachinery sales. The EPS miss was largely attributable to higher raw‑material costs and a one‑time restructuring charge related to the integration of new manufacturing assets, which reduced operating leverage for the quarter.
The company will provide further details on the acquisition and update its fiscal 2026 outlook during its third‑quarter earnings call on February 6 2026. Management highlighted that the acquisition positions Graham to capture a larger share of the high‑margin defense and space markets, while the pro‑forma leverage ratio of approximately 1.2× post‑acquisition signals disciplined capital allocation. The addition of FlackTek’s technology is expected to accelerate product development cycles and open new revenue streams in advanced materials processing, reinforcing Graham’s long‑term growth strategy.
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