INNOVATE completes $510M DBM Global sale to IES; gets ~$413M cash, 430,974 IESC shares, repays debt

INNOVATE Corp.

IES acquired 100% of DBMG; INNOVATE received ~$378M cash, 430,974 IES shares (~$146M) and $35M for a Section 338 tax election, totaling ~$413M cash at closing.
Repaid $20.7M revolving line with MSD PCOF Partners IX and DBMG repaid $68.7M under UMB Bank credit agreement; both terminated Oct 5, 2026.
Notice issued to redeem $325M principal of 10.500% Senior Secured Notes due 2027 on Oct 15, 2026 at 100% plus accrued interest.
Holders of all 9.500% Convertible Notes due 2027 consented to supplemental indenture requiring redemption 15 business days after lock-up ends; cash proceeds may not cover all debt.
Compensation Committee designated all equity awards as Replacement Awards; vesting accelerates only on Involuntary Termination within two years; Interim CEO Paul Voigt cited debt reduction.

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