INNOVATE sells DBM Global to IES for $650M; proceeds to repay debt

INNOVATE Corp.

IES acquires DBMG for $650M base; INNOVATE (91.21% owner) gets ~$453M cash + 215,487 IES shares (~$140M) + $35M tax election payment.
Net proceeds to repay revolving credit, redeem 10.5% senior notes due 2027, then offer to buy 9.5% convertible notes at 100% principal.
Closing expected Q4 2026, subject to HSR, SEC clearance of info statement, and other customary conditions; no financing contingency.
Company also entered ATM sales agreement with Jefferies for up to $31M of common stock.
After deal and Spectrum Merger, INNOVATE expects to become an inadvertent investment company under the 1940 Act.

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