Terex Acquires Environmental Solutions Group for $2 Billion

Terex Corporation has announced an agreement to acquire Environmental Solutions Group (ESG) from Dover Corporation for $2 billion in cash. This acquisition includes prominent waste management brands such as Heil, Marathon, and Curotto-Can, and aims to enhance Terex's portfolio and customer base in the solid waste industry. The deal is projected to generate approximately $25 million in cost synergies by the end of 2026 and will increase Terex's exposure in the North American market by 65%. Terex expects this acquisition to contribute positively to its revenue growth and free cash flow, with the transaction slated to close in the second half of 2024, pending regulatory approvals. Terex CEO Simon Meester emphasized the strategic importance of this acquisition for driving long-term sustainable growth. The effective purchase price, accounting for expected tax benefits, is around $1.725 billion, valuing ESG at 8.4 times its expected earnings before interest, taxes, depreciation, and amortization.