CECO Environmental, an environmentally focused, diversified industrial company, has entered into a definitive agreement to combine with Thermon Group Holdings, a global provider of industrial process heating solutions, in a stock-and-cash transaction valued at approximately $2.2 billion.
The combined company will continue under the CECO Environmental name and will be led by Chief Executive Officer Todd Gleason. Following completion of the transaction, CECO and Thermon shareholders are expected to own approximately 62.5% and 37.5% of the combined company, respectively.
The deal meaningfully expands CECO’s capabilities in mission-critical environmental and thermal solutions by adding Thermon’s industrial process heating, heat tracing, and temperature management technologies. The combination strengthens CECO’s exposure to long-term secular trends, including energy transition, power generation, industrial reshoring, infrastructure development, decarbonization, and tightening environmental regulations.
The companies expect the combination to generate approximately $40 million in annual cost synergies within 36 months of closing. The transaction is also designed to enhance revenue diversification, increase short-cycle and aftermarket exposure, and create a platform positioned for sustained double-digit growth.
Under the terms of the agreement, Thermon shareholders may elect to receive one of three forms of consideration for each share of Thermon common stock: (i) $10.00 in cash and 0.6840 shares of CECO common stock, (ii) $63.89 per share in cash, or (iii) 0.8110 shares of CECO common stock, subject to proration to maintain specified aggregate cash and stock limits. Thermon shareholders who do not make an election will receive the mixed consideration.
The mixed consideration implies a total per share value of approximately $63.13, based on CECO’s February 23, 2026 closing price of $77.68, representing a 26.8% premium to Thermon’s closing price of $49.77 on the same date.
The transaction has been unanimously approved by the boards of directors of both companies and is expected to close in mid-2026, subject to customary closing conditions and shareholder approvals. Jason DeZwirek, Chairman of CECO’s Board, and certain related holders representing approximately 15.2% of CECO’s voting power, have agreed to vote in favor of the transaction, subject to certain exceptions.
Upon closing, CECO’s board will include two members from Thermon’s current board of directors.
KEY QUOTES:
“This transaction with Thermon strategically strengthens our position as a premier engineered solutions provider. Thermon adds highly complementary industrial heating and thermal capabilities supported by attractive secular growth drivers, along with strong margins, disciplined execution, and a culture aligned with our own. Together, we will build on our shared histories to deliver a broader, more integrated set of mission-critical solutions for our customers and drive long-term growth and value for our stakeholders. We are excited to welcome the Thermon team to CECO and unite our two great organizations.”
Todd Gleason, Chief Executive Officer, CECO Environmental
“Today’s announcement marks an important step forward in our evolution toward an integrated platform, combining two leading industrial portfolios to advance our shared goal of delivering mission critical solutions across a broad range of end markets. This transaction expands the portfolio of solutions Thermon’s businesses can now offer our customers along with expanded geographic and market reach. CECO’s industrial air quality, emissions control and water treatment solutions, as well as its aligned cultural values as an industry leader providing engineered solutions to solve complex customer challenges, make it an exceptional combination for Thermon and our outstanding employees as we continue to grow to meet the needs of our expanding customer base. I thank the dedicated Thermon team around the globe who have helped us achieve this positive outcome for our company, employees, customers and shareholders and what it means for our future.”
Bruce Thames, President And Chief Executive Officer, Thermon Group
