Terex has announced a new acquisition. Image: Alexey Rezvykh/stock.adobe.com
Terex has officially completed the acquisition of Environmental Solutions Group (ESG) from Dover Corporation.
The company announced its intention earlier this year, and the deal has now been signed off. Patrick Carroll, president of Environmental Solutions Group, will remain in that role following the acquisition.
“We’re delighted to welcome ESG into the Terex family of businesses. ESG is a non-cyclical, financially accretive, market-leading business that will complement and strengthen Terex’s portfolio with synergies in the fast-growing waste and recycling end market,” Simon Meester, chief executive officer and president of Terex, said.
“ESG is led by a world-class management team and has a strong track record of operational excellence. We look forward to working with ESG to drive long-term, sustainable value for all our stakeholders.”
ESG works in refuse collection vehicles, waste compaction equipment, and associated parts and digital solutions. ESG’s industry-leading product brands include Heil, Marathon, Curotto-Can, Bayne Thinline, and Parts Central as well as digital solutions offerings 3rd Eye and Soft-Pak.
According to Terex, ESG’s turnkey products and services across equipment, digital, and aftermarket offerings are complementary to Terex’s businesses, and will allow Terex to expand its customer base, providing customers with a broader suite of environmental equipment solutions.
The all-cash transaction is for $2.0 billion, or $1.725 billion when adjusted for the present value of expected tax benefits of approximately $275 million. With ESG, Terex will now derive 67 per cent of its total revenue from North America, an increase from 61 per cent based on trailing 12 months results ended Q2 2024.
UBS Investment Bank served as exclusive financial advisor and Fried Frank and Pryor Cashman served as legal advisors to Terex.
“At ESG, our vision has always been to improve the lives of our team members, our customers, and our communities. We are looking forward to becoming part of Terex, because we see it as a great cultural fit with opportunities to expand our positive impact. We are looking forward to greater scale and access to new markets,” Carroll said.
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