Terex Corporation Acquires Environmental Solutions Group

The Terex Corporation has announced that it has completed an acquisition of Environmental Solutions Group (ESG) from the Dover Corporation. The acquisition is expected to enhance Terex’s revenue growth, free cash flow, EBITDA margin, and earnings per share (EPS).

Terex also expects the deal to contribute double-digit EPS growth by the end of 2025 with meaningful growth to follow. The cash deal is valued at $2 billion, or $1.725 billion when accounting for the present value of tax benefits of roughly $275 million.

Following this acquisition, Terex's North American revenue will increase to 67%, up from 61% based on trailing 12-month results that ended in Q2 2024. The acquisition price represents about 8.4x ESG’s projected EBITDA, including expected run rate synergies.

ESG brings a strong catalog of industry-leading brands to Terex, including Heil, Marathon, Curotto-Can, Bayne Thinline, and Parts Central. Digital solutions such as 3rd Eye and Soft-Pak also existed under the ESG umbrella. Each of ESG’s products and services, digital offerings, and aftermarket solutions works well with Terex’s businesses, allowing the company to expand its customer base.

"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. 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,” said Simon Meester, Terex President and CEO.

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According to Meester, Patrick Carool, President of ESG, will continue his role following the acquisition. Carroll is a seasoned veteran in the industry with experience that should easily bridge the gap between the two companies. Carroll has been President of ESG for the past 14 years and even served as President of Terex Utilities from 2001 through 2005.

"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,” said Carroll.

Julie Beck, Terex SVP and CFO added that the acquisition of ESG strengthens Terex’s portfolio and creates a clear path for accelerated and sustainable growth.

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“ESG has demonstrated a sustained track record of resilient, high-single-digit organic growth through the cycle. Its EBITDA margin including run-rate synergies is expected to add 140 basis points of margin accretion. ESG's efficient operating model with low net working capital will drive a meaningful improvement in free cash flow accretion. And finally, Terex expects ~$25 million of identified synergies to be achieved by the end of 2026,” said Beck.