Terex acquires Environmental Solutions Group

Terex Corp., Norwalk, Connecticut, has completed its acquisition of Environmental Solutions Group (ESG) from Illinois-based Dover Corp.

“We’re delighted to welcome ESG into the Terex family of businesses,” Terex President and CEO Simon Meester says. “ESG is a noncyclical, financially accretive, market-leading business that will complement and strengthen Terex’ 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.”

Terex says the deal will drive revenue growth, free cash flow, earnings before interest, taxes, depreciation and amortization (EBITDA) margin and EPS accretion.

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Julie Beck, Terex senior vice president and chief financial officer, says ESG’s EBITDA margin, including run rate synergies, is expected to add 140 basis points of margin accretion, and Terex expects approximately $25 million of identified synergies to be achieved by 2026.

“This acquisition significantly strengthens Terex’ portfolio and creates a path for accelerated, sustainable growth,” she says.

According to Terex, the transaction is expected to be double-digit percentage adjusted EPS accretive in 2025. The all-cash transaction is for $2 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 percent of its total revenue from North America, an increase from 61 percent based on results from the second quarter of 2024.

ESG has delivered a 7 percent long-term organic revenue compound growth rate (CAGR) over the last decade. The company’s product brands include Heil, Marathon, Curotto-Can, Bayne Thinline and Parts Central, as well as digital solutions 3rd Eye and Soft-Pak. Terex says ESG’s products and services across equipment, digital and aftermarket offerings are complementary to its business, allowing Terex to expand its customer base by offering a broader suite of environmental equipment solutions.

ESG will retain President Patrick Carroll following the transaction. Carroll has experience leading manufacturing businesses and served as president of Terex Utilities from 2001-2005.

“At ESG, our vision has always been to improve the lives of our team members, our customers and our communities,” Carroll says. “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.”