Mergers & Acquisitions ·
INNOVATE Corp. entered into a definitive agreement to sell approximately 91.21% of its subsidiary DBM Global Inc. to…
VATEINNOVATE Corp.
INNOVATE Corp. entered into a definitive agreement to sell approximately 91.21% of its subsidiary DBM Global Inc. to IES Holdings for an aggregate base purchase consideration valued at $650 million, subject to customary adjustments. The transaction involves the acquisition of shares followed by a statutory merger under Delaware law. INNOVATE will receive approximately $453 million in cash and 215,487 shares of IES common stock valued at $140 million, plus an additional $35 million for tax election costs. The company intends to use all net proceeds to repay its revolving credit facility, mandatorily redeem its 10.500% Senior Secured Notes due 2027 within 15 days of closing, and offer to purchase its 9.5% Convertible Senior Secured Notes due 2027 at par plus accrued interest. The transaction is expected to close in the fourth quarter of 2026, pending regulatory approvals including Hart-Scott-Rodino clearance and SEC review of an information statement. Concurrently, INNOVATE filed a prospectus supplement for an at-the-market equity offering of up to $31 million with Jefferies LLC. This filing accompanies pro forma financial statements reflecting the disposition alongside the separate Spectrum Merger transaction.