Mergers &
Acquisitions

This week brings significant moves in energy infrastructure and home improvement sectors with two major deals reshaping their respective industries.

1. Western Midstream Partners Acquires Aris Water Solutions for $1.5 Billion

Western Midstream Partners (NYSE: WES) has agreed to acquire Aris Water Solutions in a cash and stock transaction valued at approximately $1.5 billion. The acquisition expands Western's footprint in the Permian Basin and diversifies its operations in the growing water management sector.

Aris complements Western's existing produced-water business and enhances its ability to compete for new development opportunities. The deal brings long-term contracts and minimum volume commitments with counterparties, expanding Western's customer base. Aris shareholders will have the option to receive either 0.625 WES common shares or $25.00 in cash per share.

The acquisition is expected to be accretive to 2026 free cash flow per unit, representing a 7.5x multiple on consensus 2026 EBITDA including $40 million in targeted cost synergies. Aris shareholders are expected to own approximately 7% of Western's outstanding common stock post-transaction.

Acquirer: Western Midstream Partners (The Woodlands, Texas)
Target: Aris Water Solutions (Houston, Texas)
Deal Value: ~$1,500,000,000 (Cash + Stock)
Announcement Date: August 6^th, 2025
Expected Close: Q4 2025
Western Advisors: BofA Securities (Financial) + Vinson & Elkins LLP (Legal)
Aris Advisors: Citi (Financial) + Gibson, Dunn & Crutcher LLP (Legal)

Summary

• Expands Western's Permian Basin water management capabilities
• 7.5x multiple on 2026 EBITDA including synergies
• $40 million in targeted cost synergies

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2. MasterBrand and American Woodmark Merge in $3.6 Billion Deal

MasterBrand (NYSE: MBC) and American Woodmark Corporation (NASDAQ: AMWD) announced an all-stock merger creating a home improvement powerhouse with $3.6 billion in enterprise value. The combination brings together MasterBrand's product breadth and manufacturing efficiency with American Woodmark's innovation and digital capabilities.

American Woodmark shareholders will receive 5.15 shares of MasterBrand common stock for each AMWD share, with the companies owning 63% and 37% of the combined entity respectively. The deal is expected to generate approximately $90 million in cost synergies by the end of year three, with trailing EBITDA of $639 million.

The combined company expects a net debt to adjusted EBITDA ratio below MasterBrand's 2.0x target by closing, enhancing free cash flow generation. This merger creates a stronger competitor in the evolving home improvement market, better positioned to meet changing customer needs.

Merging Parties: MasterBrand (Beachwood, Ohio) & American Woodmark (Winchester, Virginia)
Deal Value: ~$3,600,000,000 (All-stock)
Announcement Date: August 6^th, 2025
Expected Close: Early 2026
MasterBrand Advisors: Rothschild & Co (Financial) + Skadden, Arps, Slate, Meagher & Flom LLP (Legal)
American Woodmark Advisors: Jefferies (Financial) + McGuireWoods LLP (Legal)

Summary

• Creates home improvement leader with $3.6B enterprise value
• $90 million in expected cost synergies
• 63/37 ownership split favoring MasterBrand