ESAB was down about 3% Tuesday as investors focused on the company’s financing steps associated with its planned purchase of Eddyfi Technologies. The market reaction reflects concerns that the transaction will increase debt and reduce financial flexibility, particularly if end-market demand or margins soften.

Recent disclosures around funding the Eddyfi deal have kept attention on ESAB’s balance-sheet trajectory. ESAB has already outlined capital-raising actions connected to the acquisition, including a private placement of common shares at $114 per share that generated roughly $140.1 million of net proceeds before other offering expenses, and has discussed acquisition-related financing arrangements ahead of an expected mid-2026 close.

Debt-funded acquisitions can pressure stocks when investors believe incremental leverage may amplify downside risk, especially in a more uncertain macro backdrop for industrial names. The selloff also comes as ESAB’s shares have been trending lower, with traders citing weak momentum and lingering questions about the pace of organic growth and the ability to maintain margins while absorbing financing costs and integration execution.

Key swing factors include the final capital structure for the Eddyfi acquisition, closing timing and regulatory approvals, and any updates to ESAB’s outlook as the deal moves closer to completion. Investors will also watch whether ESAB can deliver organic growth and margin performance strong enough to offset higher interest expense and reassure the market on post-deal leverage.