Terex Corporation and REV Group have entered into a definitive merger agreement to merge via a stock and cash transaction.
The merger will create a diversified company that manufactures equipment for the emergency, waste, utilities, environmental and materials processing industries.
Alongside news of the merger, Terex also announced it plans to exit its aerials segment, which includes Genie. The company will consider a sale or spin-off of the aerials business.
Headquartered in Brookfield, Wisconsin, REV Group is a manufacturer of recreational and specialty vehicles, including fire apparatus, ambulances, buses and RVs, along with related parts and services. The company has more than 210,000 vehicles in service today.
The merger with Terex will create a substantial manufacturing footprint in the United States. When the deal is finalized, Terex CEO, Simon Meester, will serve as President & Chief Executive Officer.
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“This transaction represents a transformative step for both companies. By combining our complementary portfolios and leveraging our collective strengths, we are creating a large-scale, diversified industrial leader well-positioned to capitalize on long-term secular growth trends,” Meester said.
“The transaction will unlock significant value for both Terex and REV Group shareholders and creates exciting opportunities for our team members and customers by strengthening our ability to invest in the combined business, innovate and deliver quality solutions.”
TEX on the NYSE
The agreement was unanimously approved by the boards of directors of both
companies, REV Group shareholders will receive, for each REV Group share, 0.9809 of a share of the combined company and $8.71 in cash ($425 million in total). Upon closing, Terex shareholders will own about 58 per cent, while REV Group shareholders will own about 42 per cent of the combined company’s fully diluted shares on a
pro forma basis. Following the close, the combined company will continue to be traded on the NYSE under the symbol TEX. Both parties expect to pay dividends in the ordinary course of business through closing.
The combined company is expected to have about $7.8 billion in net sales.
“Joining forces with Terex is a natural evolution of our strategy of building a stronger, more profitable and scaled company by bringing together two highly respected organizations with shared values and a commitment to innovation, operational excellence, and customer success,” said Mark Skonieczny, CEO of REV Group.
“We are beginning an exciting new chapter that will generate meaningful value for our shareholders, customers and employees.”
