Key Takeaways
- • H.I.G. Capital has agreed to acquire MISTRAS Group in an all-cash transaction valued at approximately $866 million enterprise value, with the deal announced September 18, 2026 and expected to close in late 2026 or early 2027.
- • The acquisition price of $20.35 per share in cash represents a 9.1x multiple on trailing twelve-month adjusted EBITDA of $95 million (as of June 30, 2026) and 9.5x on full-year 2025 EBITDA of $91 million against $724 million in 2025 revenue.
- • MISTRAS is a global non-destructive testing (NDT) and asset integrity platform serving oil and gas, aerospace and defense, power generation, and infrastructure sectors, with approximately 4,800 employees and no single customer exceeding 10% of revenue, providing diversified exposure across end markets.
- • The company operates a vertically integrated business model combining inspection and testing services with proprietary software platforms (PCMS, New Century Software) and sensor manufacturing (Physical Acoustics brand), generating recurring revenue from both service delivery and asset monitoring.
- • Morgan Lewis advised MISTRAS on the transaction while Kirkland & Ellis advised H.I.G. Capital, with the acquisition strengthening H.I.G.'s NDT and industrial asset integrity platform as the alternative investment firm expands its industrial services portfolio.
Summary
H.I.G. Capital has secured a definitive agreement to take MISTRAS Group private in an all-cash acquisition valued at approximately $866 million enterprise value, announced on September 18, 2026. The transaction represents H.I.G.'s entry into the non-destructive testing and industrial asset integrity market, acquiring a well-established operator with diversified customer exposure across critical infrastructure and manufacturing sectors.
MISTRAS, headquartered in Princeton Junction, New Jersey, is a global provider of non-destructive testing, inspection, monitoring, and software solutions for industrial equipment. The company inspects refinery vessels, pipelines, storage tanks, power plants, bridges, and aircraft components using ultrasound, radiography, and acoustic sensors to identify structural flaws including cracks, corrosion, and weak welds. The business model integrates service delivery with proprietary hardware and software: its Physical Acoustics brand manufactures sensors for acoustic monitoring, while PCMS and New Century Software track asset condition and pipeline integrity data for operators.
The $20.35-per-share acquisition price reflects a valuation multiple of 9.1x on trailing twelve-month adjusted EBITDA of approximately $95 million (for the twelve months ended June 30, 2026) and 9.5x on full-year 2025 adjusted EBITDA of $91 million against $724 million in 2025 revenue. Oil and gas producers, refiners, and pipeline operators represent the largest revenue segment, followed by aerospace and defense, power generation, and infrastructure customers. Critically, no single customer accounts for more than 10% of revenue, reducing customer concentration risk.
Founded in 1978 as Physical Acoustics by Sotirios Vahaviolos and fellow former AT&T Bell Laboratories researchers, MISTRAS employs approximately 4,800 people, with roughly two-thirds based in the United States. The company is led by CEO Natalia Shuman. Morgan Lewis advised MISTRAS on the transaction while Kirkland & Ellis represented H.I.G. Capital. The acquisition is expected to close in late 2026 or early 2027, subject to customary closing conditions.
MISTRAS, headquartered in Princeton Junction, New Jersey, is a global provider of non-destructive testing, inspection, monitoring, and software solutions for industrial equipment. The company inspects refinery vessels, pipelines, storage tanks, power plants, bridges, and aircraft components using ultrasound, radiography, and acoustic sensors to identify structural flaws including cracks, corrosion, and weak welds. The business model integrates service delivery with proprietary hardware and software: its Physical Acoustics brand manufactures sensors for acoustic monitoring, while PCMS and New Century Software track asset condition and pipeline integrity data for operators.
The $20.35-per-share acquisition price reflects a valuation multiple of 9.1x on trailing twelve-month adjusted EBITDA of approximately $95 million (for the twelve months ended June 30, 2026) and 9.5x on full-year 2025 adjusted EBITDA of $91 million against $724 million in 2025 revenue. Oil and gas producers, refiners, and pipeline operators represent the largest revenue segment, followed by aerospace and defense, power generation, and infrastructure customers. Critically, no single customer accounts for more than 10% of revenue, reducing customer concentration risk.
Founded in 1978 as Physical Acoustics by Sotirios Vahaviolos and fellow former AT&T Bell Laboratories researchers, MISTRAS employs approximately 4,800 people, with roughly two-thirds based in the United States. The company is led by CEO Natalia Shuman. Morgan Lewis advised MISTRAS on the transaction while Kirkland & Ellis represented H.I.G. Capital. The acquisition is expected to close in late 2026 or early 2027, subject to customary closing conditions.
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