22.07.2024

Terex to acquire ESG

Aerial lift, crane and material processing equipment manufacturer Terex is to acquire waste and recycle business Environmental Solutions Group in a $2 billion all cash deal from its owner Dover.

Environmental Solutions Group manufactures refuse collection vehicles and waste compaction equipment in North America, under the brands Heil, Marathon, Curotto-Can, and Bayne Thinline, as well as digital solutions companies 3rd Eye and Soft-Pak.

When adjusted for the expected tax benefits of approximately $275 million, the purchase price is $1.725 billion. Terex also expects to gain at least $25 million from synergies by the end of 2026, largely driven by procurement, supply chain efficiencies and commercial initiatives.

Terex chief executive Simon Meester said: "This acquisition of ESG marks an incredibly exciting milestone in our multiyear transformation and aligns with our goal of strengthening our portfolio and leveraging our operating system to drive sustainable, accelerated long term growth. ESG will add a non-cyclical, financially accretive, and market leading business to Terex's portfolio with tangible synergies in the fast-growing waste and recycling end market. In addition, ESG is led by a world class management team with a strong track record of operational excellence. We look forward to welcoming the ESG team to Terex and driving long-term, sustainable value for all our stakeholders."

Terex has obtained debt financing for the deal from UBS Investment Bank which it hopes to combine with cash on hand and debt financing. The transaction is anticipated to close in the second half of 2024, subject to the receipt of required regulatory approvals and customary closing conditions.

To learn a little more about ESG check the short video below: