Terex Corporation has signed a definitive agreement to acquire Environmental Solutions Group (ESG) from Dover Corporation in a $2 billion all-cash transaction.
ESG is comprised of several brands in the solid waste industry, including Heil, Marathon, Curotto-Can and Bayne Thinline, as well as digital solutions offerings 3rd Eye and Soft-Pak.
ESG’s array of turnkey products and services across equipment, digital and aftermarket offerings are complementary to Terex’s businesses, and will allow Terex to expand its customer base, provide customers with a broader suite of environmental equipment solutions. ESG has a track record of consistent growth, delivering an anbout 7 per cent compound anural growth rate over the last 10 years.
“This acquisition announcement of ESG marks an incredibly exciting milestone in our multi-year transformation and aligns with our goal of strengthening our portfolio and leveraging our operating system to drive sustainable, accelerated long-term growth,” said Terex President and CEO, Simon Meester.
“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 and has 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.”
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As a market leader in waste and recycling, ESG holds the top position in refuse collection vehicles and waste compaction equipment in North America, enabling Terex to create three market-leading business segments in the fast-growing waste and recycling end-market.
Terex’s North American industry exposure will increase to 65 per cent, expanding its global market opportunity to $40 billion.
Terex will create the new Environmental Solutions segment that includes ESG as well as Terex’s existing Utilities business. The segment combines Terex’s position in utility equipment with ESG’s portfolio of brands.
The segment will service the waste, recycling and utility end markets that are expected to benefit from growth themes including electrification, circularity and energy transition.
The transaction is expected to close in the second half of 2024, subject to the receipt of required regulatory approvals and customary closing conditions.
